Retailers in Britain faced a muted Christmas trading period in December 2025 as households continued to rein in spending amid rising living costs, the British Retail Consortium has said.
Total retail sales rose 1.2 percent year on year, well below the 3.2 percent increase recorded in December 2024 and short of the 12‑month average growth rate of 2.3 percent, according to the BRC.
Food sales were up 3.1 percent, outpacing the previous year but still trailing the annual average. Non‑food sales fell 0.3 percent, reversing the 4.4 percent growth seen a year earlier.
“It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month,” BRC Chief Executive Helen Dickinson said. She noted that food sales were buoyed largely by ongoing inflation, while gifting categories underperformed.
Linda Ellett, head of consumer, retail and leisure at KPMG in Britain, said shoppers continued to cut discretionary spending as household bills rose. “Retailers are also facing increasing costs while needing to invest in innovation,” she said.
Dickinson called for measures to support struggling families and help lift the broader economy.
