UK retail sales spark in December
By Abigail Townsend
Date: Friday 23 Jan 2026
(Sharecast News) - UK retail sales rose in December, official data showed on Friday, beating expectations, as spending picked up in the run-up to Christmas.
According to the Office for National Statistics, retail sales volumes increased 0.4% last month, comfortably ahead of consensus for a 0.1% decline.
Driving the rise was strong demand for precious metals alongside increased supermarket sales, both of which helped offset a 0.9% slide at non-food stores.
Over the quarter, sales were down 0.3%, due to weaker trading in October and November following a bumper summer, when retailers benefited from warm weather and the Women's Euro 2025 tournament.
But sales strengthened 1.3% over the year, up from 2024's more modest 0.2% uplift. It was the second consecutive annual rise, following falls in 2023 and 2022.
However, the ONS noted that volumes had yet to recover from the 2023 fall and remained below pre-pandemic levels.
Hannah Finselbach, senior statistician at the ONS, said: "The last three months of the year saw a slight drop in retail sales following a strong third quarter, with supermarkets and online stores both down.
"However, sales were up in December, with internet retailing doing well. Within this, online jewellers had a strong month, and told us there was strong demand for gold and silver."
Danni Hewson, head of financial analysis at AJ Bell, said: "The headline rise in retail sales masks what has been a difficult Christmas for our high streets. People were keen to splurge on tasty treats but were still cautious when it came to gifts.
"For many retailers, the golden quarter will have looked less lustrous than they would have hoped."
Harvir Dhillon, economist at the British Retail Consortium said: "Typically popular Christmas gifting categories such as electricals, books and health and beauty saw sales drop as people tightened purse strings.
"This performance capped off a difficult year, where significant cost pressures have been weighing down on the industry."
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