UK: Sales rebound in December in much-needed boost for retailers

New figures from the Office of National Statistics (ONS) have shown a modest, yet much-needed increase in retail sales volumes for December 2025, a positive end to a significantly more muted year for the sector.

Over the month, sales rose 0.4 percent, up from a decline of 0.1 percent in November and a steeper drop of 0.8 percent in October. Annual sales volumes rose 1.3 percent over the year to 2025, driven by food, non-food stores and non-store retailers.

In the three months to December (Q4), volumes fell 0.3 percent compared to the three months prior. Yet, when compared with Q4 2024, sales rose 2.1 percent. Volumes remained below pre-pandemic levels in February 2020, down 1.5 percent.

Non-store retailers welcomed an increase in sales for December, after declines in the preceding months. Online jewellers, in particular, reported an uptick in demand for precious metals in December.

More broadly, fashion and textile retailers saw a 0.7 percent drop in month-on-month volumes, yet a marginal 0.5 percent increase over the quarter. Shifts were more pronounced online, where fashion reported a 0.9 percent monthly drop, compared with a 1 percent increase over the quarter.

Overall online spending value rose 2.1 percent across the UK in Q4 compared to Q3, and 8.4 percent when compared to the same period in 2024. During the month, online sales were up 11.1 percent on the year prior and 1.8 percent on November 2025.

In a statement, Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: “December delivered a modest but much-needed lift for retailers, with sales rebounding after two months of subdued spending. Heavy discounting shaped spending patterns, as many shoppers delayed purchases and held out for late promotions.

“Gains from non-store retailers underpinned performance, while strong Christmas trading updates from supermarkets suggested that shoppers were most willing to spend on food and small indulgences.”