The UK retail sector received an unexpected boost during the crucial Christmas trading period, with sales volumes rising by 0.4% in December, confounding forecasts of a 0.1% decline. This surprising upturn was driven largely by a surge in demand for gold and silver from online jewellery firms.
According to figures from the Office for National Statistics (ONS), internet sales performed particularly well, offsetting a slight dip in supermarket and fuel sales. The data suggests that consumers were gaining confidence in their personal finances, after concerns over the impact of the Chancellor’s late November budget proved to be less severe than initially feared.
“Retail sales rebounded in December as months of tax-hike uncertainty faded, allowing consumers to return to the high street with more confidence around their personal finances,” explained Elliott Jordan-Doak, a senior economist at Pantheon Macroeconomics.
The surge in demand for precious metals was a key driver of the unexpected sales boost. Hannah Finselbach, a senior statistician at the ONS, noted that “December enjoyed a boost from internet jewellers who reported ‘higher demand for gold and silver’, after a slight lull in November.” Gold is considered a safe-haven commodity and has experienced a record-breaking price rally, approaching $5,000 per ounce, amid global macroeconomic uncertainty.
Across the final three months of 2025, known as the “golden quarter” for retailers, sales fell by 0.3%, marking a sharp slowdown from growth of 0.6% in the previous three months. However, the positive performance in December helped offset this overall decline, with sales for the year as a whole rising by 1.3% – the second consecutive annual increase after large falls in 2022 and 2023.
Despite the improvement, retail sales volumes in the final quarter of 2025 remained around 2% below 2019’s pre-pandemic levels, underscoring the ongoing pressures from high living costs, elevated borrowing rates, and fragile consumer confidence, according to Martin Beck, chief economist at WPI Strategy.
The data suggests that the UK retail sector is navigating a challenging economic landscape, but the unexpected Christmas boost from online jewellers has provided a glimmer of hope for the industry.
