Official statistics have delivered a surprising pre-Christmas boost for the UK retail sector, with sales volumes unexpectedly rising in December following a previous monthly decline.
December's Unexpected Uptick
The Office for National Statistics (ONS) has estimated that the total volume of retail sales, measuring the quantity of goods purchased, increased by 0.4% in December 2025. This positive movement comes after a recorded fall of 0.1% during November, defying most economic forecasts which had anticipated a flat performance for the crucial festive trading month.
"Sales were up in December, with internet retailing doing well," stated ONS senior statistician Hannah Finselbach. "Within this, online jewellers had a strong month and told us there was higher demand for gold and silver."
Online Sector Drives Growth
A significant driver behind the December recovery was a substantial surge in online trading. Sales across internet retailers jumped by 4.4% during the month, marking the most considerable increase since February of the previous year. This rebound followed a notable lull in November, with the ONS attributing the strength to robust consumer demand for precious metals like gold and silver through online jewellers.
However, the picture across different retail segments was mixed. The data confirmed a challenging Christmas period for non-food stores, which experienced a 0.9% drop in sales volumes—the worst performance for this sector since May 2024. Clothing and footwear sales specifically declined by 0.7% in December.
In contrast, supermarkets saw a modest 0.2% month-on-month rise in sales, aligning with recent reports from major grocery chains indicating a buoyant festive period for food sales as retailers competed aggressively on price.
Quarterly and Annual Context
Despite the December uplift, the overall performance for the critical final quarter of 2025 remained subdued. The rise failed to offset earlier falls of 0.8% in October and 0.1% in November, resulting in a 0.3% decline in retail sales by volume for the entire fourth quarter.
"The final quarter of the year when retailers traditionally make most of their money was a disappointment," commented Jacqueline Windsor, head of retail at PwC UK. "It's now clear that consumers held back in the run-up to Christmas. Even as budget uncertainty dissipated, shoppers did not buy as much as retailers hoped, due to the later start to Christmas shopping and factors such as higher grocery price inflation meaning they had to divert their spending from discretionary categories to essentials."
Looking at the full year, the December figure contributed to an annual increase of 1.3% in sales volumes for 2025. This represents the most significant yearly rise since 2021 and marks a second consecutive annual increase following the substantial declines witnessed in 2022 and 2023. Nevertheless, the ONS noted that sales volumes still remain below their pre-pandemic levels.
Consumer Confidence and Future Outlook
Separate data released on Friday provided a glimmer of hope for continued recovery. GfK's consumer confidence report showed a slight improvement in its reading, suggesting household resilience may be supporting spending intentions.
Economic analysts point to potential tailwinds for the year ahead. "We think consumers' spending should continue to recover in 2026 as policy uncertainty continues to ease, inflation falls, and the Monetary Policy Committee reduces interest rates in April," said Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
The retail sector's performance had been hampered in the latter part of 2025, with many major retailers flagging a hit to trading in October and November due to consumer uncertainty ahead of the late-November budget. The December bounceback, particularly in the online sphere, offers a nuanced conclusion to a year of gradual recovery for UK retailers.
