Online spending up in January but shoppers defer payments

Online spending in the UK nudged up during January, following year on year growth in December, fuelled partly by the use of buy now pay later (BNPL) schemes.

Online spend hit £8.4bn for the month, according to software firm Adobe Analytics, marking a 2.9% rise on the £8.1bn spent the same time last year.

The increase follows year-on-year growth of almost 20% in December, partly due to Cyber Monday falling during within the month, as well as growth of 5.9% over the whole holiday period.

Shoppers were still reliant on buy now pay later services over the period, according to the figures, with £1.26bn spent using BNPL schemes in January, up 3.3% from the year before.

Shoppers prioritised their health and wellness during the month, with purchases of exercise equipment up 60% month-on-month, while spending on vitamins and supplements increased by 26%.

Purchases of fruits and vegetables were also up 24% month on month over the period.

Adobe Digital Insights lead analyst Vivek Pandya said: “After indulging in deep online discounts during the holiday season, shoppers kicked off 2025 by putting their money where their health is and spending on items to boost their wellness and fitness.

“Consumers also took advantage of continued discounting in January with online retailers dropping the prices of apparel, sporting goods, furniture and appliances in an effort to avoid a post-Christmas spending hangover.”

The figures come after online sales took a hit in January 2024, with the majority of product categories dipping due to lower demand.

Online sales dropped 7% over January 2024, or 3.5% year on year, according to ecommerce association IMRG’s online retail index.

Click here to sign up to Retail Gazette‘s free daily email newsletter