Non-food sales flat as UK retailers struggle in December 2025

Published: 13 January 2026. The English Chronicle Desk. The English Chronicle Online.

UK retailers faced a challenging December as non-food sales fell flat, confirming long-standing worries about high street performance. Overall retail sales grew by just 1.2% year-on-year, the British Retail Consortium (BRC) reported, below the 12-month average growth of 2.3%. Non-food sales, including clothing and electronics, struggled during the festive period, slipping 0.3% compared with December 2024 growth of 4.4%, highlighting the sector’s ongoing difficulties.

Helen Dickinson, chief executive of the BRC, described the period as a “drab Christmas”, noting that non-food products saw lower demand than expected. Many shoppers delayed purchases in anticipation of Boxing Day and January sales, impacting overall sales performance. Card spending also fell 1.7% in December, Barclays data confirmed, marking the steepest annual decline since February 2021.

While general merchandise struggled, grocery sales remained resilient, with supermarkets benefiting from rising prices. Data from Worldpanel by Numerator showed grocery inflation reached 4.3%, and the average shopper spent £476 in December, around £15 more than in 2024. Nevertheless, high food prices are expected to influence future spending, with 64% of consumers intending to reduce grocery expenses this year, according to Barclays. Discretionary spending on items like clothing and dining out is also set to decrease for over half of UK shoppers.

Discount retailers performed strongly, with Aldi recording a 3% year-on-year sales rise in the four weeks to 24 December, while Lidl reported a 10% increase leading up to Christmas Eve. Tesco and Sainsbury’s saw growth over the period, but investor expectations were not fully met, causing a decline in their shares.

General merchandise, including clothing, toys, and jewellery, remained weak across the sector. Argos, part of Sainsbury’s, saw sales fall 2.2% in the six weeks to 3 January, citing online traffic trends, promotional pressures, and low consumer confidence. Primark, under Associated British Foods, issued a profit warning, sending shares down roughly 15% for the year amid underwhelming fashion sales.

Online competitors such as Temu and Shein continue to disrupt traditional retail, forcing brick-and-mortar stores to adapt or face declining profits. Several chains, including Claire’s, the Original Factory Shop, and LK Bennett, are reportedly considering administration due to challenging market conditions. Analysts warn that unless consumer confidence improves, high street recovery may remain slow, especially in non-food segments where online and discount competition dominates.

The December retail performance demonstrates that while grocery resilience persists, non-food sales remain vulnerable to inflation, consumer caution, and competitive pressures. The data underscores a structural shift in the retail market, with digital platforms and discount chains increasingly influencing shopping habits. Retailers now face mounting pressure to adjust pricing, promotional strategies, and online presence to maintain relevance and profitability in 2026.

Retail experts suggest that the mixed results highlight an urgent need for innovation and agility across the sector. As the UK economy navigates inflationary pressures, rising costs, and changing consumer behaviour, traditional retailers must rethink strategies to remain competitive. Analysts believe that promotional events, early discounting, and flexible inventory management will be key to mitigating sales declines, especially in the non-food category.

In summary, UK retailers ended 2025 on a subdued note, with non-food sales significantly underperforming, while supermarkets maintained modest gains. The retail landscape is now dominated by discount chains and online platforms, highlighting an ongoing transformation in shopping trends. Retailers that fail to adapt may struggle further, while those embracing online integration and value-focused offerings are likely to thrive. The coming months will be crucial for the sector as businesses seek to recover lost momentum and address evolving consumer expectations.

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