Overview
- The ONS reported a 0.4% month‑on‑month increase in retail volumes for December, beating expectations for flat growth.
- Despite the late bounce, sales volumes fell 0.3% over the fourth quarter as earlier declines in October and November outweighed December’s gain.
- Internet sales jumped 4.4% in December, with online jewellers citing stronger demand for gold and silver.
- Across 2025, retail volumes rose 1.3% for the biggest annual increase since 2021, yet activity remained below pre‑pandemic levels.
- Sector data showed a 0.2% rise for supermarkets, a 0.9% drop for non‑food stores, and a 0.7% decline in clothing and footwear, while analysts expect a gradual spending recovery in 2026 as inflation eases and rate cuts are anticipated.