| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.0% | -0.2% to 0.2% | 0.4% | -0.1% | |
| Year over Year | 1.1% | 0.8% to 1.1% | 2.5% | 0.6% | 1.8% |
Highlights
Retail activity showed renewed momentum in December 2025, with sales volumes rising by 0.4 percent following consecutive declines in October and November. This rebound suggests improving consumer confidence at year-end, supported largely by the recovery of non-store retailing. Online retailers recorded stronger demand, particularly among jewellers, as interest in precious metals increased after a subdued autumn period.
On an annual basis, retail volumes grew by 2.5 percent, reinforcing signs of gradual stabilisation in household spending. Online sales values rose sharply, increasing by 1.8 percent month-over-month and by 11.1 percent compared with December 2024. Consequently, total retail spending expanded by 0.8 percent, while the online share of sales edged up to 28.3 percent, confirming the continued structural shift towards digital purchasing channels.
Performance across sectors remained uneven. Supermarkets and automotive fuel recorded modest monthly gains, although non-food stores declined by 0.9 percent, reflecting ongoing pressure on discretionary spending.
Over 2025, most sectors achieved annual growth, with food sales rising for the first time since 2021. However, non-store retail volumes remained below their pandemic peak, while automotive fuel sales declined, signalling changing consumption patterns and reduced reliance on transport-related spending. These updates take the RPI to 35 and the RPI-P to 33, meaning that economic activities continue to outperform the expectations of the UK economy.
Market Consensus Before Announcement
Sales expected flat on the month in December after declining 0.1 percent in November. On year, sales expected up 1.0 percent in December after rising only 0.6 percent in November.
Definition
Retail sales measure the total receipts at stores that sell durable and nondurable goods. The data include all internet business whose primary function is retailing and also cover internet sales by other British retailers, such as online sales by supermarkets, department stores and catalogue companies. Headline UK retail sales are reported in volume, not cash, terms but are available in both forms. The data are derived from a monthly survey of 5,000 businesses in Great Britain. The sample represents the whole retail sector and includes the 900 largest retailers and a representative panel of smaller businesses, including internet sales. Collectively, all of these businesses cover approximately 90 percent of the retail industry in terms of turnover.
Description
With consumer spending a large part of the economy, market players continually monitor spending patterns. The monthly retail sales report contains sales data in both pounds sterling and volume. UK retail sales data exclude auto sales.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.
Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps apparel sales are showing exceptional weakness but electronics sales are soaring. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.