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Data from the Office for National Statistics (ONS) reveals that demand for online jewellery contributed to a slight increase in retail sales during December, despite challenges faced by retailers throughout the festive season. Overall sales rose by 0.4% compared to November, with online jewellers reporting heightened interest in precious metals such as gold and silver. While internet shopping experienced positive momentum, supermarket sales and automotive fuel purchases also saw modest gains. Conversely, sales at non-food retailers, including department stores, clothing outlets, and household goods sellers, declined by 0.9%.
This unexpected monthly improvement followed a surprising drop in sales in November, which had included the Black Friday shopping event. Retail figures indicated a 0.1% decline in November and a 0.8% decrease in October. The ONS cautioned that monthly growth figures often fluctuate, noting that retail sales volumes fell by 0.3% during the final quarter of the year compared to the previous quarter, with decreases observed in both supermarkets and online stores. Despite these short-term variations, the calendar year 2025 saw retail sales rise by 1.3%, driven by stronger performance in both food and non-food sectors as well as non-store retailers—mainly online stores, street stalls, and markets. However, total sales still remain below pre-pandemic levels from 2019.
Hannah Finselbach, a senior statistician at the ONS, commented on sales trends: “The last three months of the year saw a slight drop in retail sales following a strong third quarter, with supermarkets and online stores both down. However, sales were up in December, with internet retailing doing well. Within this, online jewellers had a strong month and told us there was higher demand for gold and silver.” The ongoing cost of living squeeze has impacted consumer spending, while businesses have faced rising operational costs linked to recent budget changes.
Nicholas Hyett, an investment manager at Wealth Club, noted a shift in shopping habits towards the online market over the holiday season: “There was no festive cheer on the high street.” He highlighted the particularly strong performance of online jewellers, explaining, “In uncertain times shoppers seem to be being drawn to dual purpose jewels that not only tick the Christmas present box, but provide a convenient long-term store of value as well.” The popularity of precious metals as safer investments has been reflected in soaring gold and silver prices over the past year. Alice Cowley, managing director of Accenture’s retail practice, described the monthly sales uptick as a “modest” reprieve following a challenging autumn, adding, “But while food, discounts and holiday preparations pushed up sales, it wasn’t enough to drive significant growth. With Christmas being a crucial time for the sector, those wishing for a bumper trading period were left disappointed.” Meanwhile, Neil Bellamy, consumer insights director at GfK, which monitors consumer confidence, remarked, “We remain a long way from consumers feeling that better days are around the corner.” The GfK consumer confidence index increased slightly by one point in January to minus 16, marking a decade since the index last recorded positive sentiment
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