{"id":116637,"date":"2026-01-13T09:30:00","date_gmt":"2026-01-13T09:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=116637"},"modified":"2026-01-13T08:35:27","modified_gmt":"2026-01-13T08:35:27","slug":"uks-december-retail-hopes-dashed","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/uks-december-retail-hopes-dashed\/","title":{"rendered":"Uk\u2019s December Retail Hopes Dashed as Spending Stalls Nationwide"},"content":{"rendered":"\n

Retailers across the UK closed out the year on a disappointing note, with December, traditionally the sector\u2019s busiest month, offering little relief. Data released this week revealed only modest year-on-year growth in retail sales, driven largely by grocery spending, while non-food categories saw a downturn.<\/p>\n\n\n\n

The figures, reflecting a key period in the retail calendar, point to wider challenges facing the British high street. Weakened consumer confidence, persistent inflation and the rise of online discount platforms contributed to a complex trading environment throughout the festive period.<\/p>\n\n\n\n

Non-Food Categories Drag Down Overall December Performance<\/strong><\/h2>\n\n\n\n

According to the British Retail Consortium<\/em> (BRC<\/a>), total UK retail sales in December 2025 increased by just 1.2%<\/strong> compared to the previous year, falling short of the 12-month average growth of 2.3%<\/strong>. While food sales remained resilient, non-food categories such as clothing and electronics experienced a 0.3%<\/strong> drop, a stark contrast to the 4.4%<\/strong> growth recorded in December 2024.<\/p>\n\n\n\n

Helen Dickinson<\/strong>, chief executive of the BRC, described it as a \u201cdrab Christmas\u201d and noted that this marked the fourth consecutive month of slowing sales growth. \u201cNon-food sales fell flat in the run-up to Christmas, with gifting items doing worse than expected<\/em>,\u201d she said. Many shoppers appeared to delay purchases in anticipation of deeper discounts, with a noticeable uplift only seen during Boxing Day<\/strong> and early January sales events.<\/p>\n\n\n\n

Barclays <\/a>Bank reported a 1.7%<\/strong> year-on-year fall in card spending during December, the largest decline since February 2021. This followed a 1.1%<\/strong> fall in November, indicating a sustained pullback in discretionary spending. The data also suggests a broader shift in consumer priorities, as rising household costs continue to impact spending habits across key retail segments.<\/p>\n\n\n\n

Discount Grocers Outperform as Shoppers Tighten Budgets<\/strong><\/h2>\n\n\n\n

Against the broader trend of retail softness, discount supermarkets Aldi<\/em> and Lidl<\/em> delivered record-breaking performance over the festive period. According to figures reported by The Guardian<\/em>, Aldi\u2019s UK division recorded a 3% increase<\/strong> in sales in the four weeks to 24 December, while Lidl reported a 10% rise<\/strong> in the same period.<\/p>\n\n\n\n

Food price inflation helped support overall supermarket revenues. According to Worldpanel by Numerator, grocery inflation stood at 4.3% <\/strong>in December, with the average household spending \u00a3476<\/strong>, approximately \u00a315 more than the previous year. Despite this, concerns over affordability remain. According to Barclays, 64%<\/strong> of shoppers intend to cut back on grocery spending in 2026, and more than half plan to reduce discretionary purchases such as clothing and dining out.<\/p>\n\n\n\n

Meanwhile, legacy retailers faced greater challenges. Sales of general merchandise were weak across the board. Argos<\/em>, owned by Sainsbury\u2019s<\/em>, reported a 2.2% fall in sales during the six weeks to 3 January. The company cited \u201csignificant headwinds from online traffic trends, a tough and promotional general merchandise market and weak consumer confidence<\/em>\u201d as key obstacles.<\/p>\n\n\n\n

Traditional retailers also continue to feel the pressure of online competition, particularly from budget-focused platforms like Temu<\/em> and Shein<\/em>. Shares in Associated British Foods<\/em>, owner of fashion retailer Primark<\/em>, have declined by around 15% this year following a profit warning linked to weak sales.<\/p>\n\n\n\n

Three brands, Claire\u2019s<\/em>, The Original Factory Shop<\/em> and LK Bennett<\/em>, are reportedly on the brink of administration, highlighting the financial strain on parts of the sector. With high operational costs and subdued consumer sentiment persisting into the new year, many retailers may find 2026 an equally testing landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"

It was meant to be the strongest retail month of the year. Instead, December brought disappointing results for many UK retailers. As some stores struggled with weak demand and cautious shoppers, others quietly posted record gains.<\/p>\n","protected":false},"author":10,"featured_media":116640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-116637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=116637"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116637\/revisions"}],"predecessor-version":[{"id":116641,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116637\/revisions\/116641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/116640"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=116637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=116637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=116637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}