Scott, head of investment at Interactive Investor, said in a report that the January data on the slowdown in retail sales in the UK released by the British Retail Association brought a harsh realistic test to the optimism surrounding the Christmas season. “While 2024 may be a year of interest rate cuts and real income growth, consumers are still struggling to cope with much higher prices and higher mortgages than a few years ago. This has led to lower consumer confidence and lower spending.” Scott pointed out that the current environment is creating a gap in the retail industry. Retailers of luxury goods and some non-essential goods are struggling, while grocery stores such as Tesco continue to thrive.