Demand for jewelry pushes retail gross sales increased over Christmas… however they fail to shine in golden quarter

Retailers enjoyed a temporary Christmas bounce as demand for gold soared but sales failed to shine in the final quarter.

Overall volumes rose 0.4 per cent in December, helped by increased online sales which jumped 1.8 per cent.

Retailers suggest reduced demand for precious metals had affected sales in November, but there was renewed demand among online jewellers ahead of Christmas.

Some retailers have reaped the benefits of increased appetite for gold and silver, prices of which have soared in recent months as investors flock to the precious metals.

But the Office for National Statistics (ONS) said that the overall volume of goods fell by 0.3 per cent in the fourth quarter compared to the previous quarter as retailers reckoned with the fall-out from the Budget.

Demand for jewellery helped prop up retail sales over December but failed to shine over Q4

There was a distinct drop-off in supermarket sale volumes, which the ONS attributed to a bumper third quarter as good weather and the Women’s Euro final helped to boost volumes.

Overall, all main sectors except fuel rose across 2025 but volume has failed to return to pre-pandemic levels.

Nicholas Found of Retail Economics said: ‘Households spent smarter over Christmas, particularly in grocery. 

‘Consumers leaned heavily on promotions and shifted spend from eating out to premium at-home meals. 

‘Retailers combining strong value perception with quality credentials were the clear beneficiaries. 

‘Discretionary non-food categories faced a toxic mix of weak demand, lingering uncertainty following the late November Budget, and margin-eroding promotions. 

‘Many retailers were forced to discount earlier and harder to defend market share, putting profitability under strain.’

Supermarkets have been among the worst affected, with figures showing they have failed to fully recover from their fall in 2024.

While leading supermarkets have reported strong sales over Christmas, they have warned that discounting, higher costs and the anticipated changes to business rates would dent earnings.

It comes as new data showed British consumers had endured a decade of gloom with confidence remaining in negative territory since 2016. 

In the same week, leading retailers have issued several profit warnings, including B&M which said it would not meet expectations for the third time since last summer. 

Primark also confirmed a bleak Christmas period, blaming weaker sales on a ‘difficult clothing market’.