What's Happening?
Retail sales in December saw a 0.4% increase, despite a decline over the fourth quarter of 2025, according to the Office for National Statistics (ONS). The rise in sales was primarily driven by a 4.2% increase in non-store retail volumes, attributed to a surge in online demand for gold and silver jewellery. While food store volumes decreased by 1.1% over the quarter, they experienced a slight uptick of 0.2% in December. The British Retail Consortium noted a fragmented market during the Christmas period, with larger retailers experiencing a 1.6% drop in sales, while smaller independents saw a 6.4% growth.
Why It's Important?
The increase in retail sales, particularly in the online jewellery sector, highlights a shift in consumer purchasing behavior towards online platforms.
This trend underscores the growing importance of e-commerce in the retail industry, which could lead to further investments in digital infrastructure by retailers. The disparity in sales performance between large retailers and smaller independents suggests a potential shift in consumer preference towards niche and independent brands. This could impact the competitive landscape, prompting larger retailers to adapt their strategies to capture market share.
