December spending picks up despite weak Q4 performance

According to the most recent data released by the Office for National Statistics, retail sales volumes increased 0.4% in December 2025, rebounding from a 0.1% fall in November.

The boost in the crucial Christmas trading month represented an annual sales rise of 2.5% compared to December 2024, while online sales increased 1.8% during the month, up 11.1% year on year. 

The rise did not offset a challenging fourth quarter, with volumes down 0.3% compared to Q3, following strong summer trading boosted by good weather and the Women’s Euro 2025 tournament.

Supermarkets and automotive fuel posted modest gains, though non-food stores fell 0.9% on the month.

The quarterly picture was mixed across sectors. Supermarkets declined after a strong Q3 performance, while online retailers dropped following falls in October and November.

For the full year, retail sales volumes rose 1.3%, the second consecutive annual increase, with growth across food stores, non-food stores and online retailers.

Despite two years of growth, volumes remained 1.5% below pre-pandemic February 2020 levels and have not recovered from 2023’s decline.

Online sales values climbed 1.8% in December, pushing the online share of total retail to 28.3%, up from 28.0% in November.