January 2010 saw the worst retail sales growth in 15 years after sales values dropped -0.7% compared to January 2009 when sales had risen +1.1%, according to the British Retail Consortium (BRC), therefore in total sales rose by +1.2% against a +3.2% increase in January 2009.

Despite food sales being boosted by the snowy conditions in the first week of January, once the weather improved food sales slowed and non-food picked up but not at a significant rate.

Stephen Robertson , director general of the BRC, said: “It was an awful start to the year and in stark contrast to an upbeat December. This is the worst January growth in total sales in the 15 years we’ve been running the survey. The month as a whole was significantly weaker than December.

“Most non-food sectors had a poor start, though nearly all recovered towards the end of the month. Furniture and DIY were worst hit as customers put off buying non-essentials. The VAT change brought some sales forward to December, but customers are becoming cautious again in the face of economic and political uncertainty. Retailers will be hoping these results are mainly a snow induced blip, rather than an indication of further difficulties.”

Growth in internet, mail-order and phone sales slowed to 14.6% in January 2010 from 26.5% in December 2009. As shoppers turned to purchase online as the snow prevented them from getting out, with a number of retailers reporting new users as a result. Sales continued to outpace store sales but the expansion is from a very low base, as non-food non-store sales account for only about 4% of total retail sales.