The bloodbath on the high street failed to materialise in January with year-on-year sales actually rising by 9.1 per cent.

According to the BDO High Street Sales Tracker, milder weather and continued discounting helped to ensure a particularly strong first half to the month.

Shoppers took advantage of VAT-busting offers that held VAT at 17.5 per cent beyond January 4, when it was supposed to rise to 20 per cent.

Online sales continued to soar, up 49 per cent and, said BDO, £1 in every £5 spent by consumers now goes to an online retailer.

“This year has had a healthy start thanks to promotional activity around the VAT rise and the New Year Bank Holiday falling on a shopping day,” said BDO’s national head of retail and wholesale, Don Williams.

“However, now the New Year buzz has worn off, retailers will be preparing for a tough first quarter. With momentum starting to build behind new platforms such as mobile commerce, getting non-store offers right will be even more crucial this year.”