Has retail regained its mojo? Online sees its biggest YOY spending increase for nearly 5 years
The latest Office for National Statistics (ONS) retail bulletin reveals retailers had an unexpectedly happy new year this January. Retail sales volumes (the amount we bought) are estimated to have risen by 1.8% in January 2026 over December 2025.
The home delivery expert Parcelhero says that, looking at the three-month period from November 2025 to January 2026, sales volumes were also up by 0.1% compared to the previous three-month period. ‘Better still,’ says David Jinks MILT, Parcelhero’s head of Consumer Research, ‘volumes for November-January were also up 2.6% year-on-year (YOY), meaning Brits bought more items over the Christmas/Black Friday peak and New Year than they did a year ago.
‘It’s e-commerce that looks to be the retail star leading us into 2026. Non-store (the category which is primarily made up of online sales) sales volumes rose 3.4% in January over December.
‘Even more encouragingly, online sales values (the amount we spent) rose by 1.3% this January and by 14.7% when compared to January 2025. This was the largest YOY rise since April 2021 and may give retailers hope that consumer confidence is finally on the rise.
‘It was a similar picture comparing the three months to January 2026, when the amount we spent online rose by 1.8% compared to the previous three-month period to October 2025. What’s more, online spending rose by a sparkling 10.8% compared to November 2024 to January 2025.
‘Overall, our total spend (the sum of in-store and online sales) rose by 1.6% in January 2026 compared to December 2025 – a strong result.
‘Online continued to defend its share of the overall retail spend, just falling fractionally from 28.3% in December 2025 to 28.2% market share in January 2026 – a remarkably consistent result.
‘All in all, January was a good month online and on the High Street. Could retail have its mojo back for 2026 after a lacklustre few years? Let’s hope the chancellor’s Spring Statement, due 3 March, contains nothing to spook consumers.
‘Ultimately, however fickle or strong key retail periods of the year prove to be, it’s those stores with a combined High Street and online offering that are most protected against unexpected events. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf