Report Summary

Period covered: 04 January - 31 January 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Homewares sales

Homewares sales rose by xx% year-on-year in January, a clear improvement on the previous month and positioning the category among the stronger non-food performers at the start of 2026.

The uplift was driven by a combination of clearance activity, seasonal home reset behaviour and resilient demand for smaller-ticket domestic purchases.

Key trading themes and drivers

Promotional intensity was central to January’s performance, though the drivers extended beyond simple clearance mechanics.

Retailers entered the month managing residual seasonal stock after uneven festive trading. Markdown activity awas deployed early to stimulate conversion. Unlike larger-ticket furniture categories, homewares promotions typically influence basket composition. The effect was visible in transaction volumes, with consumers adding multiple lower-ticket items to take advantage of visible value.

January carries a strong behavioural association with domestic reset: decluttering, reorganising storage, refreshing bedrooms and upgrading everyday kitchenware. Demand for storage solutions, bedding, towels, cookware and small domestic accessories reflected this mindset. These are functional purchases that can be justified within constrained budgets, making the category less exposed to postponement risk than big-ticket home investments.

Weather conditions strengthened home-centric consumption patterns. Prolonged rainfall and storm disruption reduced incidental browsing on high streets, yet increased time spent indoors encouraged spending on comfort-led products and practical domestic upgrades.

Channel dynamics were particularly important. Research journeys increasingly began online, even where final transactions were completed in-store. Consumers compared prices, reviewed stock availability and explored styling ideas digitally before committing. 

There was also evidence of cautious optimism in consumer behaviour. Shoppers did not exhibit expansive discretionary confidence; instead, they demonstrated willingness to invest selectively in practical and aesthetic improvements that delivered visible day-to-day benefit. January’s performance therefore reflects a blend of price responsiveness, seasonal domestic behaviour and adaptive channel usage.

Footfall patterns

Total UK retail footfall declined year-on-year in January, yet homewares proved comparatively resilient. Retail parks demonstrated strength during weather breaks, and larger format stores benefited from mission-based visits tied to home improvement and organisation tasks.

High streets and shopping centres saw softer traffic, limiting impulse-led decorative purchases.

Macroeconomic backdrop

The macroeconomic environment in January offered incremental support to home-related spending, though conditions remain measured rather than expansive.

Headline inflation eased to xx%, its lowest rate in nearly a year, reducing pressure on household budgets and improving real income stability. Goods inflation moderated more noticeably than services, which is relevant for homewares retailers exposed to imported merchandise and global supply chains.

Wage growth continued to outpace inflation, sustaining modest real income gains even as earnings momentum slowed. This dynamic is important for mid-ticket homewares purchases, which rely less on credit and more on disposable income.

Consumer confidence improved to xx, with households expressing greater optimism about their own financial outlook than about the broader economy. That distinction supports selective spending behaviour.

Interest rates were held at xx%, and expectations of gradual reductions later in 2026 improved sentiment around overall household affordability.

House prices rose MoM and returned to annual growth, reinforcing household balance sheet stability. Transaction volumes remain subdued, limiting move-driven homewares demand, yet improved price certainty supports incremental refresh spending among homeowners choosing to invest in existing properties.

Labour market conditions softened, with unemployment edging higher and vacancy growth plateauing. This tempers expectations of rapid discretionary expansion and reinforces the importance of visible value in homewares pricing strategies.

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CPI fell to 3.0% in January from 3.4%, its lowest level since March 2025