Food store sales volumes jumped in January, marking their largest rise since March 2020, according to new data.

According to the latest retail sales figures from the Office for National Statistics (ONS), food store sales volumes rose by 5.6% on the month, following four consecutive monthly falls.

Supermarkets, specialist food stores such as butchers and bakers, and alcohol and tobacco stores all saw sales increases over January, with retailers suggesting that the rise was due to more people eating at home.

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Overall retail sales volumes ere estimated to have risen by 1.7% last month, following a fall of 0.6% in December 2024, with monthly index levels at their highest since August 2024.

British Retail Consortium director of insight Kris Hamer said: “2025 got off to a good start with retail sales managing to weather the stormy January.  But, with consumer expectations for the economy falling almost 40pts since July 2024 and an unsteady job market, the next few months are hard to predict.”

He explained that the boost to sales “barely touches the sides of the £7bn in new costs from the Budget and packaging levy facing the industry this year”.

“The industry is already paying more than its fair share of tax and with retailers already doing all they can to absorb existing costs, retailers will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. To mitigate this, government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

Last month, M&S chief executive Stuart Machin warned that the retail sector is “being raided like a piggy bank” following tax changes set out in the Autumn Budget.