Retail sales increase in December due to demand for online jewelery
Despite an overall tough festive period for retailers, online jewelery demand helped boost retail sales in December. Statistics show.
Sales were up 0.4% from the previous month, the Office for National Statistics (ONS) said, citing online jewelers reporting increased demand for precious metals such as gold and silver.
Internet shopping performed well, while supermarket and automotive fuel sales increased slightly. But sales at non-food retailers such as department, clothing and home stores were down 0.9%.
The monthly increase – larger than expected – comes after an unexpected decline in sales in November, even though that included Black Friday sales.
Retail sales fell 0.1% in NovemberWhich came after a 0.8% decline in October.
Monthly growth rates can be volatile, and the ONS said sales volumes fell by 0.3% in the last three months of last year compared to the previous quarter, with both supermarkets and online stores seeing declines.
The end of the year is an important period for retailers, as for many stores the festive season generates the bulk of their annual sales and profits.
Overall in 2025, retail sales grew 1.3%, with strong performance for both food and non-food stores and non-store retailers (mainly online sellers, but also street stalls and markets).
This represents the second consecutive annual increase, but sales still remain below 2019-pre-coronavirus pandemic levels.
Hannah Finselbach, senior statistician at the ONS, said: “The last three months of the year saw a slight decline in retail sales following a strong third quarter, with both supermarkets and online stores closing.
“However, sales increased in December, with internet retailing doing well. Meanwhile, online jewelers had a strong month and they told us there was more demand for gold and silver.”
The rising cost of living has squeezed shoppers’ wallets, and businesses have complained of higher costs following changes announced in the last two budgets.
Nicholas Haight, investment manager at the Wealth Club, said the figures showed there was “no festive cheer on the high street” as Christmas shoppers increasingly moved online.
“Among online retailers, jewelers particularly enjoyed a golden Christmas. In uncertain times shoppers are increasingly drawn to dual-purpose jewellery, which not only ticks the Christmas gift box, but also provides a convenient long-term store of value.”
Precious metals are seen as safe haven assets in times of uncertainty, and the prices of both gold and silver have risen over the past year.
They reached record highs in recent days Investors reacted to US President Donald Trump’s threat to impose new tariffs on eight European countries that oppose the proposed annexation of Greenland.
Alice Cowley, managing director of Accenture’s retail practice, said there was a “modest” monthly increase in UK retail sales There will be some relief after the “difficult autumn”.
“But food, discounts and holiday preparations boosted sales, but it was not enough to drive significant growth,” she added.
“With Christmas being an important time for the sector, those hoping for a bumper trading period were disappointed.”
“We are far from consumers feeling that better days are ahead,” said Neil Bellamy, director of consumer insights at GfK, a company that analyzes consumer confidence.
GfK’s latest consumer confidence index rose one point in January to minus 16, and it has now been 10 years since the index showed a positive number.
In the year ahead, Capital Economics expects consumer spending to remain “fairly soft.”
Alex Kerr, UK economist at Capital, said he believed “the combination of weak employment and slow wage growth will prevent a meaningful pick-up in consumer spending growth in 2026”.
