UK retail sales grew at a slower pace in December despite festive season as consumers cut back spending on higher household bills, the British Retail Consortium said Tuesday.
Total retail sales increased 1.2 percent in December from the previous year compared to an annual growth of 3.2 percent in the same period last year.
Food sales rose 3.1 percent on a yearly basis, while non-food sales decreased 0.3 percent. In-store non-food sales dropped 0.5 percent and online non-food sales fell 0.1 percent.
The online penetration rate increased to 38.6 percent in December from 38.5 percent in the last year.
“It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month,” said BRC Chief Executive Helen Dickinson.
“Despite the disappointing December, 2025 saw stronger sales growth overall, as non-food recovered from its 2024 decline,” Dickinson added.
“It remains a challenging time for retailers, with consumers cutting back on spending due to higher household bills and any discretionary spend is being prioritised, particularly toward holidays and home improvements,” KPMG UK Head of Consumer, Retail & Leisure Linda Ellett said.
Ellett noted that retailers are facing increasing costs while needing to invest in innovation. “There will be an ever-sharpening focus on business models, efficiencies and profit margin in the months ahead,” added Ellett.
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