Drab Christmas as consumers wait for sales
Covering the 5 weeks of 30 November 2025 – 3 January 2026
- UK Total retail sales increased by 1.2% year on year in December, against a growth of 3.2% in December 2024. This was below the 12-month average growth of 2.3%.
- Food sales increased by 3.1% year on year in December, against a growth of 1.7% in December 2024. This was below the 12-month average growth of 3.7%.
- Non-Food sales decreased by 0.3% year on year in December, against a growth of 4.4% in December 2024. This was below the 12-month average growth of 1.1%.
- In-Store Non-Food sales decreased by 0.5% year on year in December, against a growth of 0.4% in December 2024. This was below the 12-month average growth of 0.9%.
- Online Non-Food sales decreased by 0.1% year on year in December, against a growth of 11.1% in December 2024. This was below the 12-month average growth of 1.5%.
- The online penetration rate (the proportion of Non-Food items bought online) increased to 38.6% in December from 38.5% in December 2024. This was above the 12-month average of 37.2%.
Helen Dickinson, chief executive at the British Retail Consortium, said: “It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month. While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse than expected. Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales. Despite the disappointing December, 2025 saw stronger sales growth overall, as non-food recovered from its 2024 decline.
“These figures show that consumer spending remains cautious, with households squeezed by the rising cost of living. Now is the time to support struggling families with the cost of food and essentials and give the economy the boost it needs. From business rates to the implementation of the Employment Rights Act, there are plenty of opportunities for Government to mitigate costs for retailers and prices for customers.”
Linda Ellett, UK head of consumer, Retail & Leisure, KPMG, said: “While there are individual festive success stories among retailers, retail sales largely froze in December. Total retail sales climbed by 1.2 percent, with higher inflation also a factor in the sales growth.
“It remains a challenging time for retailers, with consumers cutting back on spending due to higher household bills and any discretionary spend is being prioritised, particularly toward holidays and home improvements. Retailers are also facing increasing costs while needing to invest in innovation. There will be an ever-sharpening focus on business models, efficiencies and profit margin in the months ahead.”
Food & Drink sector performance | Sarah Bradbury, CEO, IGD, said: “December saw record Christmas grocery sales and a welcome boost in shopper confidence, as often happens during the festive season. However, minimal volume growth highlights that the food and drink industry is still under pressure and nearly half of shoppers told us they were more worried about the cost of Christmas this year. Retailers responded to shopper concerns by highlighting meal affordability and heavy discounting on fresh produce. Overall, it points to a Christmas where shoppers sought ways to celebrate whilst carefully balancing budgets.”