First Minister Mark Drakeford also confirmed
current lockdown restrictions would be extended and "strengthened".This means non-essential retail, hospitality venues, licensed premises and leisure facilities remain closed and showrooms must now shut as well.
Mr Drakeford said: "The pandemic has reached a significant point."
He told BBC Radio Wales the announcement was the "best certainty" he could offer parents, pupils and teachers, "in a world which is highly uncertain and where things change almost every single day".
The phased return to face-to-face learning at some Welsh universities has also been postponed, while internal GCSE, A-level and AS-level assessments have been cancelled.
The announcement follows a similar move in England, where Prime Minister Boris Johnson has already said schools would not open before half term.
Wales has been in an alert level four lockdown since 20 December in an attempt to reduce the transmission of coronavirus.
On Thursday, 63 further deaths from coronavirus were reported by Public Health Wales.
Speaking to BBC Radio Wales, Mr Drakeford said the new variant was more easily spread and stricter lockdown measures were now needed to keep people safe.
Ministers are in talks with employers and unions and changes are set to be announced for workplaces - to protect workers - early next week.
"Given the fact that the new variant is so much easier to catch... we are looking at supermarkets and other places where people leave their homes, to make sure they are organised in a way that keeps their staff and customers safe," he said.
Mr Drakeford said he wanted to see the way supermarkets were policed return to the way they were during the first lockdown, with strict number limits in stores and social distancing measures abided to.
But he said a curfew, meaning people would have to be in their homes by a certain time, similar to that seen in Northern Ireland, was not currently being considered.
Schools and colleges had already been told they would have to teach online until 18 January at the earliest, however this will now continue if cases of the virus do not fall "materially" before the next review date on 29 January.
If cases do not drop, that would mean schools would reopen on 22 February at the earliest, and internal exams have also been cancelled.
But teaching unions have warned that more uniformed lateral flow testing needs to be in place and teachers must be vaccinated before talks on how to reopen schools can begin.
Speaking at the Welsh Government coronavirus briefing, Mr Drakeford said people working at special schools and school and college staff who were at risk would soon be vaccinated.
Cardiff University has also confirmed that a phased return to in-person teaching has been cancelled, with learning continuing online for most students until 22 February.
Students currently have to have had two lateral flow tests confirming they are negative for Covid-19 before they return to Welsh campuses - and face to face teaching is only resuming for medical students and those who have practical parts of their courses on campus.
Mr Drakeford said: "Universities have worked hard to make sure that when students do return it is done in a careful and controlled way, with the safety of those young people and their communities at the forefront of their planning."
The announcement affecting showrooms means any retailers which allow people to browse and then order for a future date - such as kitchens, bathrooms, furniture and car sales - must close.
Click and collect will still be allowed.
Confirming alert level four restrictions would continue for at least three more weeks, Mr Drakeford told Radio Wales the lockdown measures were already leading to cases falling, but the rate remained high.
"There are some positive signs that the huge collective effort we are making is making a difference, but the numbers are stubbornly high," he said.
"We have not yet seen an impact of those falls feeding into the number of people being admitted to hospital and becoming, sometimes, so ill they need intensive care.
"We need to see the numbers come down as well so that our NHS is genuinely able to cope with the enormous pressure it is currently facing."
Mr Drakeford said huge efforts were being made to rollout the Covid-19 vaccines, and with the "end being in sight" it was more important than ever for people to follow the rules and stay home.
"We have made so many sacrifices together and we mustn't stop now," he said.
What is happening with schools?
- Schools and colleges are open for children of critical workers, as well as vulnerable learners and anyone who needs to complete essential exams or assessments
- All nurseries and childcare settings remain open
- Universities in Wales had already agreed a staggered start to term, but these are now being pushed back with learning continuing online
- Welsh university students studying in England should not return to campuses and will be taught online after a separate lockdown was imposed
Education Minister Kirsty Williams said: "Schools and colleges have been safe and secure environments throughout the pandemic and that continues to be the case.
"However, the latest TAC report is clear on education's contribution. We know that school and college settings can contribute to wider social mixing outside the education environment and, right now, we all have to play our part in supressing this virus."
Ms Williams said the government would use the period until the next review date to "look at all the possibilities for a phased and safe return of some pupils, such as those studying for qualifications, or the youngest children who find distance learning the most difficult".
Following the announcement, exams regulator Qualifications Wales cancelled the spring "internal assessment window" for GCSE, AS and A-level pupils, which was scheduled for 22 February - 23 April.
Chief executive Philip Blaker said: "We know that learners need clarity about how they will be assessed and there will be clarity on revised arrangements soon."
Mr Drakeford said discussions were under way between teachers and education officials over ways children could catch up after missing time in school.
Police 'will continue to crack down on rule breakers'
Speaking at Friday's Welsh Government coronavirus briefing, Mr Drakeford said police and local authorities would continue to crack down on people who break lockdown rules.
Since the start of the pandemic, 3,585 fines have been handed out by police forces in Wales.
"Of course I want to thank everyone for following the rules and helping to keep Wales safe. It's always frustrating when a small minority act as though those rules do not apply to them," he added.
"I want everybody to know that where people knowingly and persistently break the rules, action will be taken. Too many lives have been lost to this awful virus to allow anybody to believe that they do not share in the responsibility that binds us all."
What's the reaction been to the school announcement?
Unions welcomed the news saying the health and safety of pupils and staff "had to be a priority", but said teachers must now be given the vaccine as a priority, and pupils and staff must be protected before talks about reopening schools began.
Currently teachers are not on the priority list for immunisation, and have to wait to get the jab dependent on their age and if they have a medical condition.
Laura Doel, director of The National Association of Headteachers Cymru, said a "properly organised" testing regime needed to be put in place for schools, and special schools and pupil referral units needed support to remain open."Any plan that sees school staff return to face-to-face learning should be afforded as much protection as possible against the virus," she said."Once these issues have been addressed, then we can discuss the orderly return to school we all want."
What do opposition parties say?
Opposition parties called for clear plans on how schools would return and for support to make sure pupils from poorer backgrounds did not fall behind due to a "digital divide".
Plaid Cymru's education spokeswoman Sian Gwenllian said: "The Welsh Government must plan now for the gradual and safe reopening of schools, putting in place safety measures, and should lay out plans for a vaccination programme for schools staff."
Welsh Conservative education spokeswoman Suzy Davies called for the Welsh Government to publish evidence on its reasons for closing schools, bring forward vaccines for teachers, and that money must be made available for all pupils to access laptops for online learning.
"This is another bleak day for education in Wales," she said.
"Decisions aren't easy to make and I urge everyone involved in the journeys to and from school to consider how they might help schools open again and stay open."
She tweeted: "Get a grip on consistent online quality. Give my vaccination to a younger teacher."
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