According to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor, non-food sales declined by 0.3% year-on-year, reversing the 4.4% increase seen in December 2024.
The figure also fell below the 12-month average growth of 1.1%. This highlights continued caution among consumers during the critical festive trading period.
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In-store non-food sales dropped by 0.5% compared to the same month last year. Online non-food sales also decreased slightly by 0.1%, a sharp contrast to the 11.1% growth recorded in December 2024.
Despite this, the online penetration rate for non-food items edged up to 38.6%, marginally above last year’s 38.5% and higher than the annual average of 37.2%.
Overall, UK retail sales rose by 1.2% in December compared to the previous year, but this growth was slower than December 2024’s rate of 3.2% and underperformed against the yearly average increase of 2.3%.
British Retail Consortium chief executive Helen Dickinson said: “It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month. While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse than expected. Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales. Despite the disappointing December, 2025 saw stronger sales growth overall, as non-food recovered from its 2024 decline.
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By GlobalData“These figures show that consumer spending remains cautious, with households squeezed by the rising cost of living. Now is the time to support struggling families with the cost of food and essentials and give the economy the boost it needs. From business rates to the implementation of the Employment Rights Act, there are plenty of opportunities for Government to mitigate costs for retailers and prices for customers.”
Data released last month by Unleashed indicated that sales growth and improved efficiency in the third quarter (Q3), which supported UK fashion manufacturers in restoring their margins, positioning them for a more stable financial outlook in 2026.
