- Retail sales were up 0.4% in December but down 0.3% over the final quarter of 2025
- Food and online gold sales helped boost Christmas trading while non-food sales fell 0.9% in the month
- Sales volumes went up by 1.3% in 2025 although were still below pre-Covid levels
Danni Hewson, AJ Bell head of financial analysis, comments on December’s retail sales figures:
“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.
“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.
“The soaring value of gold and silver helped to nudge up spending in final month of 2025, with online retailers enjoying a boost as people added the precious metals to their portfolios or their jewellery box.
“A long, warm summer of sport helped lift sales earlier in the year, but continued cost pressures and ongoing consumer caution fuelled by Budget uncertainty suppressed activity in those all-important final three months of the year.
“For many retailers, 2025’s golden quarter will have looked less lustrous than they would have hoped. There will undoubtedly be more names forced to cut costs or close doors, especially if those difficult trading conditions continue into the spring.”
