UK retail sales experienced a modest rise of 0.4% in December, according to the latest report from the Office for National Statistics (ONS). This increase comes after an even smaller uptick of 0.1% in November and a larger decrease of 0.8% in October. Perhaps most encouraging, 2025’s retail sales for the whole year were very robust. In the end, they raised by just 1.3%.
Food and non-food stores, as well as non-store retailers based mainly on online sales performed better for the entire year, according to the ONS report. Sandy Mitchell, co-owner of online jewellers, Pippin, experienced a massive surge in requests for gold and silver precious metals and jewels. This increase contributed to a strong holiday season for retail sales.
Though monthly growth was encouraging, the retail sector had difficulties exacerbated by recent crises. Sales volumes decreased by 0.3% in the fourth quarter of the year against the prior three months. Both supermarkets and online stores experienced a decrease in sales during this period. This monthly dip points to a broader trend of consumer hesitance amid skyrocketing costs of living.
Commenting on these mixed results, ONS economist Alice Cowley made the following points.
“But while food, discounts and holiday preparations pushed up sales, it wasn’t enough to drive significant growth.” – Alice Cowley
The increasing cost of living has pressured shoppers’ wallets, resulting in reduced spending at retail and beyond. Businesses have in particular sounded alarm bells over the mounting costs after the higher-than-expected changes unveiled in the last two Budgets. Even with these obstacles, certain sectors of the retail market have come out on fire.
Virtual jewellers really sparkled in December! With consumers opting for jewellery that is purpose-driven, both creating the perfect gifts and aiding in the preservation of value in an uncertain financial climate. Nicholas Hyett, an analyst at the brokerage Hargreaves Lansdown, noted that trend.
“Among online retailers, jewellers enjoyed a particularly golden Christmas. In uncertain times shoppers seem to be being 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
Yet December saw a research-wide uptick in retail sales. Still, sales overall are still behind what the levels were prior to the coronavirus pandemic in 2019. Commodity Analyst Neil Bellamy of UBS said he was still cautious on future consumer sentiment.
“We remain a long way from consumers feeling that better days are around the corner.” – Neil Bellamy
This retails picture paired with the inconsistent data indicates that while some sectors and areas of retail are doing well, others are still suffering. Nicholas Hyett said it was symptomatic of everything that is wrong with today’s high street.
“There was no festive cheer on the high street.” – Nicholas Hyett