UK consumers are expected to spend £93.76bn over the six-week Christmas period from mid-November through the end of December, according to the Shopping for Christmas Report by savings site VoucherCodes.co.uk. This represents an extra £2.64bn compared to the £91.12bn spent in 2025, marking a 2.9% rise in retail sales.
Inflation drives value growth despite lower volumes
While total retail spending is forecast to increase, sales volume is expected to fall by a marginal 0.2% year-on-year. This suggests that the value growth is largely driven by inflationary pressures rather than consumers purchasing more items.
Despite the dwindling purchase volume, the UK is set to lead European Christmas retail spend. Germany is forecast to trail behind in second place at £74.78bn, even with its larger population size.
Where UK consumers are spending
Looking closer at where UK consumers are spending this Christmas, groceries (£8.53bn) rank second behind gifting (£11.97bn), followed by holiday travel (£2.36bn) and decorations (£0.65bn).
Moji Oshisanya, chief commercial officer at VoucherCodes.co.uk, explained: “Our report shows that while festive spend is set to break records this year, the underlying data tells a less joyful story.
“Consumer budgets are under more stress than ever and after several years of cutting back, Brits are having to prioritise carefully how and where they spend their money to protect their most important Christmas traditions.
“Encouraging consumers to spend is going to be a challenge this year, so retailers will have to use every tool in their arsenal.
“From competitive pricing and discounts, to offering genuine value and a seamless customer experience, consumers need to feel confident that they’re making the right choice when shopping with you.”
