In value terms UK retail sales in January were down 0.3% on a like-for-like basis from the same month of 2011, when sales rose 2.3%, picking up after December 2010's snow disruption, according to the British Retail Consortium´s (BRC) monthly retail sales monitor.

Nonetheless, on both measures it was the second-worst January, after January 2010, since the survey began in 1995, the BRC has indicated this morning.

On a total basis, sales were up 2.1%, against a 4.2% increase in January 2011.

Food sales slowed sharply after their Christmas boost. Non-food also weakened and any gains were largely driven by widespread heavy discounting in clearance sales. For clothing, footwear and homewares, January was worse than December, especially for larger purchases, hit by consumer caution.

Non-food non-store (internet, mail-order and phone) sales growth slowed again after picking up sharply in December. Sales were 11.3% up on a year ago, less than December's 18.5% gain but similar to the 12.3% in January 2011.

For Stephen Robertson, Director General, British Retail Consortium, "As 2012 gets underway, it's clear people don't feel any better about the immediate future than they did 12 months ago. Customers parked their worries in December and spent, encouraged by discounts. Now, in the New Year, reality has bitten again as concerns about jobs, wages and household costs reassert themselves.

"Despite consumer confidence improving in January, actual spending shows households concentrating on paying off debt, saving and battening down for another tough year.

"Food sales grew faster than non-food but the gap was much narrower than in December as people cut back and searched out grocery offers and value lines. Big-ticket goods are still the weakest part of retailing, undermined further by the comparison with last year when beating the VAT rise and promotions linked to it helped sales.

"In 2011 overall like-for-like growth averaged virtually zero and that was with a boost to top line figures from inflation, including the higher VAT rate, which won't continue in 2012. Against that background, Government must hold down the costs it's responsible for."

AB

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