According to data released by the Office for National Statistics, retail sales grew by just 1.5% in the year to January, (but fell by 4.3% compared to December 2016), reflecting the weakest rate of annual growth since November 2013.

After disappointing retail figures in December, retailers would have been hoping to see a bounce back in the New Year – instead, January’s figures compound the message that retail spending is on the wane, according to Cebr. Both online sales and in-store retailing fared poorly in January. The wider trend is now worrying for the sector – quarter on quarter retail quantities shrank by 0.4%, the first fall since three months to December 2013.

Jack Coy, economist at Cebr, said: “Data from the ONS showed inflation accelerated to 1.8% in January. With oil prices and currency pressures, inflation is fast catching up with nominal wage growth, which softened slightly to 2.6% in Q4 of 2016. Consumers are clearly now reining in their spending, as their earnings are stretched.”