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.”
