December had caused an optimism boom for UK online retailers, especially jewellers.
Business booms
During the festive season, the demand for gold and silver surged. Sales were up enough to pull down an overall small increase in total retail sales. This is the second year in a row of annual growth. Despite this, all of that being good news, retail sales are still nationally lagging behind the 2019 pre-pandemic numbers.
Since the ONS retail sales numbers came out on 18 May, which showed a surprise increase of 0.4% compared to the month before. Considering the difficulty autumn had brought on sales, still down 0.1% in November and 0.8% in October. As of late, though, there’s a boom in sales that comes after that hard sell. December’s moderate uptick comes as a welcome sign for many in the retail sector, especially following a string of eight months with negative or flat sales performance.
Online jewellers experienced a notable surge in demand for precious metals, with consumers leaning toward gold and silver pieces. This trend is a telltale sign that shoppers have taken to these items as gifts, but as sought-after investments.
“Among online retailers, jewellers enjoyed a particularly golden Christmas. In uncertain times, shoppers seem to be drawn to dual-purpose jewels that not only tick the Christmas present box but provide a convenient long-term store of value as well.” – Nicholas Hyett
Online jewellery sales made a fortune, other industries were deeply affected. Sales by non-food retailers, such as department, clothing and household stores fell by 0.9%. Retail sales in supermarkets and online stores fell during the same period. These overall mixed results indicate that some segments of retail breakout grew and flourished, while a wealth of other categories struggled continuously.
Despite the positive annual growth figures, Neil Bellamy expressed caution, stating, “We remain a long way from consumers feeling that better days are around the corner.” This monthly volatility, in addition to complicated future outlook for retail, does not suggest we will see a strong sustained recovery.
Additionally, analysts have pointed out that it’s been a sad Christmas for brick and mortar retailers this year. Alice Cowley highlighted the struggles faced by various sectors: “While food, discounts and holiday preparations pushed up sales, it wasn’t enough to drive significant growth.” The disappointment ranks as Christmas trading was expected to be a boom time for retailers.
In their fourth quarter of 2022, sales volumes decreased 0.3% from their prior quarter. This drop further underscores the difficult climate that today’s retailers are up against. December’s results were certainly welcomed with optimism, but they are indicative of the continued uncertainty that remains in the market.
Retail sales for 2025 were up 1.3% year-on-year. When looking back at previous years, the picture is not as bright. Consumer confidence and spending habits are still top-of-mind concerns. In the last year, prices for gold and silver have skyrocketed. This increase has had a huge effect on consumer habits and purchasing trends.