UK retail sales slipped back in the first four weeks of January, according to the BRC-KPMG Retail Sales Monitor.
Total retail sales increased by 4.2% in January, compared with 11.9% in January 2022.
This is below the three-month average growth of 5.2% and above the 12-month average growth of 2.5%, according to the data, which covered the period 1-28 January 2023.
"With inflation running at around 10%, sales growth for January nearly halved in comparison to December to just over 4% - sending a clear signal that consumers have started the year with a tight rein on spending as they face another period of rising costs," KPMG analyst Paul Martin commented.
Sales of clothing remained strong, with men’s clothes and shoes the strongest category in January, whilst purchases of energy efficient appliances remained a top purchase for consumers.
Helen Dickinson OBE, chief executive, BRC said: “As Christmas cheer subsided, retailers felt the January blues as sales growth slowed.”
“Many retailers discounted heavily to entice consumer spend, and while there were bargains to be had in the January sales, retailers continue to be hit by lower margins and falling volumes.”
“Own brand ranges remain popular across food and non-food products, and big ticket items are seeing customers trade down.”
“The coming months will continue to be challenging for retailers and their customers.“