What's happened
UK retail sales increased by 0.4% in December, defying expectations of stagnation. Online sales surged by 4.4%, driven by demand for gold and silver amid soaring precious metal prices. For 2025, sales grew 1.3%, but volumes remain below pre-pandemic levels, with a weak final quarter.
What's behind the headline?
The December retail sales figures highlight a cautious but resilient consumer landscape. The 0.4% rise, driven by online demand for precious metals, indicates that consumers are still influenced by global economic uncertainty and safe-haven assets. The surge in online sales suggests a shift towards digital shopping, which will likely continue. However, the overall decline in non-food and clothing sales signals ongoing consumer hesitancy, possibly due to inflation and economic concerns. The slight improvement in consumer confidence and expectations of interest rate cuts in 2026 suggest that retail activity will gradually recover, but the sector remains fragile. Retailers should prepare for continued volatility, focusing on online channels and value-driven offerings.
What the papers say
The Independent, Sky News, The Guardian all report the modest rise in December retail sales, emphasizing the unexpected strength during the holiday period. The Independent highlights the 4.4% increase in online sales, driven by demand for gold and silver, and notes that overall volumes remain below pre-pandemic levels. Sky News underscores the positive sign for retailers, citing the rise as a sign of shaken-off pre-budget worries and the importance of online trading. The Guardian emphasizes the slowdown in the final quarter but notes the boost from safe-haven assets and improved consumer confidence, suggesting a cautious optimism for 2026. While all sources agree on the overall positive trend, The Guardian and Sky News focus more on the macroeconomic implications, whereas The Independent provides detailed insights into specific sectors like online jewellers.
How we got here
The UK retail sector experienced fluctuations in 2025, with a rebound in December following a challenging year marked by consumer uncertainty and inflation. The late 2024 budget and inflationary pressures influenced consumer spending patterns, especially in non-food stores. The rise in gold and silver prices, driven by geopolitical tensions, boosted online jewellers and safe-haven investments, impacting retail dynamics.
Go deeper
Common question
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Why Did UK Retail Sales Rise in December 2025?
UK retail sales saw a surprising increase in December 2025, defying expectations of a flat month. This boost was driven by a surge in online shopping, especially in jewelry and precious metals, amid ongoing economic uncertainties. But what does this mean for consumers and the wider economy? Below, we explore the key questions about UK retail trends and what they indicate for 2026.
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Why Did UK Retail Sales Rise in December 2025?
In December 2025, UK retail sales unexpectedly increased, defying predictions of stagnation. This boost was driven by a surge in online shopping, especially for gold and silver, amid rising precious metal prices. But what does this mean for consumers and the economy? Below, we explore the key factors behind this trend and what it signals for 2026.
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The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.
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Pantheon Macroeconomics is an economic research consultancy founded by Wall Street Journal Economic Survey 2014 US forecaster of the year, Ian Shepherdson. The firm is located in Newcastle upon Tyne, England.
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GfK is a world-leading provider of data and analytics to the consumer goods industry. It is headquartered in Nuremberg, Germany.
GfK was founded in 1934 as GfK-Nürnberg Gesellschaft für Konsumforschung e.V.