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16h ago

UK Retail Growth Slows as December Card Spending Sees Sharpest Drop Since 2021

Discount-chasing behavior pushed spending into post-Christmas sales.

Shoppers walk on Oxford Street during Boxing Day sales, in London, Britain, December 26, 2025. REUTERS/Isabel Infantes
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Households spent more on party fare and dining in during the run-up to Christmas, driving a 3.1 per cent year-on-year increase in food sales but sales of non-food items were down 0.3 per cent in the five weeks to January 3, the British Retail Consortium said
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Overview

  • Barclays reported overall consumer card spending fell 1.7% year on year in December, the steepest decline since early 2021, with essential outlays down for an eighth consecutive month.
  • BRC/KPMG data showed total retail sales up 1.2% year on year in December, the weakest increase since May and the fourth straight monthly slowdown.
  • Non-food sales slipped 0.3% from a year earlier as gifting underperformed expectations, while food sales rose 3.1% largely due to higher prices rather than volume.
  • Retailers saw a late lift tied to Boxing Day and the start of January promotions, according to BRC chief executive Helen Dickinson.
  • Barclays’ survey found 56% of consumers plan to cut discretionary purchases, with confidence ticking up slightly yet inflation worries elevated, as economists anticipate easing inflation and further rate cuts in the first half of 2026.