UK Retail Sales See Unexpected Boost from Online Jewellery Demand
Published 23 January 2026
Highlights
- UK retail sales rose by 0.4% in December, driven by strong online jewellery demand, according to the Office for National Statistics (ONS).
- Online jewellers reported increased demand for precious metals like gold and silver, seen as safe investments during economic uncertainty.
- Despite the December rise, retail sales volumes fell by 0.3% in the final quarter of 2025 compared to the previous quarter.
- Consumer confidence improved in January, reaching its highest level since August 2024, as tax hike fears eased.
- Overall, 2025 saw a 1.3% annual increase in retail sales, yet figures remain below pre-pandemic levels.
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Rewritten Article
UK Retail Sales See Unexpected Boost from Online Jewellery Demand
UK retail sales experienced an unexpected uplift in December, primarily driven by a surge in online jewellery purchases, according to the latest figures from the Office for National Statistics (ONS). Sales volumes increased by 0.4% compared to November, defying economists' predictions of a decline.
Online Jewellery Shines Bright
The festive season saw online jewellers enjoying a significant boost, with heightened demand for precious metals such as gold and silver. These metals are often viewed as safe-haven assets during times of economic uncertainty, and their prices have reached record highs. Nicholas Hyett, an investment manager at Wealth Club, noted that consumers were drawn to jewellery not only as gifts but also as long-term value stores.
Mixed Performance Across Retail Sectors
While online shopping thrived, other retail sectors faced challenges. Non-food retailers, including department and clothing stores, saw a 0.9% decline in sales. Despite the December increase, the final quarter of 2025 recorded a 0.3% drop in sales volumes compared to the previous quarter, highlighting ongoing struggles for traditional brick-and-mortar stores.
Consumer Confidence on the Rise
January brought a wave of optimism as consumer confidence reached its highest level since August 2024. This improvement followed the Chancellor Rachel Reeves's budget announcement, which was less severe than anticipated, with most tax increases postponed. Elliott Jordan-Doak, a senior economist at Pantheon Macroeconomics, emphasized that reduced tax-hike uncertainty allowed consumers to spend more confidently.
Annual Sales Growth Amidst Challenges
Across 2025, retail sales grew by 1.3%, marking the second consecutive annual rise. However, sales volumes remain below pre-pandemic levels, reflecting the ongoing impact of high living costs and elevated borrowing rates. Martin Beck, chief economist at WPI Strategy, highlighted these persistent pressures on consumer spending.
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Scenario Analysis
Looking ahead, the retail sector faces a complex landscape. While the rise in consumer confidence is promising, sustained growth will depend on economic stability and the ability of retailers to adapt to changing consumer preferences. The continued popularity of online shopping, particularly for jewellery, suggests a shift in consumer behavior that traditional retailers must address. Additionally, the global economic environment, including potential geopolitical tensions, could influence precious metal prices and consumer spending patterns. As the UK navigates these challenges, the retail industry's resilience and adaptability will be crucial in shaping its future trajectory.
UK retail sales experienced an unexpected uplift in December, primarily driven by a surge in online jewellery purchases, according to the latest figures from the Office for National Statistics (ONS). Sales volumes increased by 0.4% compared to November, defying economists' predictions of a decline.
Online Jewellery Shines Bright
The festive season saw online jewellers enjoying a significant boost, with heightened demand for precious metals such as gold and silver. These metals are often viewed as safe-haven assets during times of economic uncertainty, and their prices have reached record highs. Nicholas Hyett, an investment manager at Wealth Club, noted that consumers were drawn to jewellery not only as gifts but also as long-term value stores.
Mixed Performance Across Retail Sectors
While online shopping thrived, other retail sectors faced challenges. Non-food retailers, including department and clothing stores, saw a 0.9% decline in sales. Despite the December increase, the final quarter of 2025 recorded a 0.3% drop in sales volumes compared to the previous quarter, highlighting ongoing struggles for traditional brick-and-mortar stores.
Consumer Confidence on the Rise
January brought a wave of optimism as consumer confidence reached its highest level since August 2024. This improvement followed the Chancellor Rachel Reeves's budget announcement, which was less severe than anticipated, with most tax increases postponed. Elliott Jordan-Doak, a senior economist at Pantheon Macroeconomics, emphasized that reduced tax-hike uncertainty allowed consumers to spend more confidently.
Annual Sales Growth Amidst Challenges
Across 2025, retail sales grew by 1.3%, marking the second consecutive annual rise. However, sales volumes remain below pre-pandemic levels, reflecting the ongoing impact of high living costs and elevated borrowing rates. Martin Beck, chief economist at WPI Strategy, highlighted these persistent pressures on consumer spending.
What this might mean
Looking ahead, the retail sector faces a complex landscape. While the rise in consumer confidence is promising, sustained growth will depend on economic stability and the ability of retailers to adapt to changing consumer preferences. The continued popularity of online shopping, particularly for jewellery, suggests a shift in consumer behavior that traditional retailers must address. Additionally, the global economic environment, including potential geopolitical tensions, could influence precious metal prices and consumer spending patterns. As the UK navigates these challenges, the retail industry's resilience and adaptability will be crucial in shaping its future trajectory.
