UK retail sales rose 0.4% in December, bolstered by increased food purchases and online gold sales, though non-food sales fell 0.9% during the month.
Rising gold prices may have helped drive a preference for gifting precious metals over the festive period, with online jewellery standing out as a clear winner amid overall non-food sales that fell.
Although retail rose in December, sales declined 0.3% across the final quarter of 2025, reflecting challenging Christmas trading conditions and a trend of shoppers holding off making purchases until the last moment, which points to underlying weakness.
Quieter shops and lower levels of online activity during October and November prompted retailers to start sales earlier than they might otherwise have, leading to an uptick in the final days before Christmas.
For the full year, sales volumes increased 1.3%, though they remained below pre-pandemic levels.
“The headline rise in retail sales masks what has been a difficult Christmas for our high streets. People were keen to splurge on tasty treats which helped deliver bumper sales to supermarkets, but they were still cautious when it came to snapping up gifts for loved ones,” explained Danni Hewson, AJ Bell head of financial analysis,” said Danni Hewson, AJ Bell head of financial analysis.
“The trends evident over the past couple of years have continued, with shoppers seeking out value for money and waiting for those sales events before making their purchases.
“Experiences have also become highly sought after. Many people have preferred to hoard their cash in order to make memories with their friends and families, focusing on moments rather than mementos.”