Retail Sales Hit Three-Year High Amid Tech and Gold Rush

Published: 24 October 2025. The English Chronicle Desk. The English Chronicle Online.

Retail sales across Great Britain reached their highest level since July 2022 last month, according to official data, defying expectations and reflecting strong demand for technology and gold. Shoppers’ enthusiasm for the latest gadgets, combined with a surge in online gold purchases, helped lift total retail volumes despite ongoing economic pressures.

Data from the Office for National Statistics (ONS) shows that retail sales volumes rose by 0.5% in September, marking the fourth consecutive month of growth and surpassing economists’ forecasts of a 0.2% decline. This increase was largely driven by strong consumer activity in technology and telecommunications stores, where demand for the newly released iPhone 17 proved a significant boost.

The popularity of online shopping continued unabated, with e-commerce sales climbing for the eighth consecutive month. Internet jewellers reported robust demand for gold, which has surged in value as a safe-haven commodity amid heightened global uncertainty. This marked the metal’s biggest rally since the 1970s, prompting many consumers to purchase jewellery or invest in bullion online.

Non-food stores, including department stores, clothing shops, and household goods retailers, recorded the largest gains in September, with sales volumes rising 0.9% over the month. Total retail sales for the year to September increased by 1.5%, demonstrating resilience in consumer spending despite persistent cost-of-living pressures. The ONS also revised August’s growth up slightly from 0.5% to 0.6%.

Despite the month-on-month increase, retail volumes remain 1.6% below pre-pandemic levels in February 2020, highlighting the ongoing impact of inflation, rising energy bills, and economic uncertainty on consumer behaviour. The summer months had already seen a boost in retail activity, as shoppers purchased clothing during warmer weather and engaged with events such as the Euro 2025 women’s football tournament. Quarter-on-quarter sales between July and September were up 0.9% compared with the April–June period.

However, data collection issues at the ONS have caused some concern. July’s retail sales figures were delayed by two weeks, highlighting problems with producing timely and reliable statistics. Treasury officials have reportedly expressed unease over these delays as they prepare for the upcoming budget in November, signalling potential challenges for economic forecasting.

Analysts caution that September’s strong performance may be short-lived. High inflation, weakening employment trends, and the potential for tax increases could all dampen consumer spending in the coming months. Nicholas Found, head of commercial content at consultancy Retail Economics, noted that households are approaching purchases with increasing caution.

“Shoppers are taking a deliberate approach to spending as essential living costs continue to pressure budgets,” Found said. “The late autumn budget next month could not come at a more challenging time for the retail sector, arriving just as businesses prepare for peak Christmas trading. Concerns over taxation and borrowing are shaping consumer decisions, intensifying competition for discretionary spending.”

The period leading up to the Christmas season is critical for retailers, as it often accounts for a significant portion of annual revenues. While September’s data suggests a temporary boost in consumer confidence, experts warn that uncertainty surrounding the UK economy may lead shoppers to remain conservative with discretionary spending. Retailers are therefore likely to face a delicate balance: capitalising on current enthusiasm for high-demand items while preparing for possible slowdowns later in the quarter.

Retail economists highlight that discretionary categories, such as electronics, jewellery, and non-essential clothing, are particularly sensitive to changes in consumer confidence. While tech purchases surged with the launch of the iPhone 17, broader retail trends may see more restrained spending if households focus on covering essential costs such as energy, food, and housing.

Gold, in particular, has emerged as a surprising driver of online sales. The precious metal’s recent surge has been attributed to global instability, prompting consumers to treat it both as an investment and a personal purchase. Online jewellers reported that the gold rush contributed significantly to September’s retail growth, demonstrating the interconnectedness of global financial trends and local consumer behaviour.

While retail volumes have not yet returned to pre-pandemic levels, September’s performance suggests that targeted product releases and online convenience can stimulate spending even in a challenging economic environment. However, the sector faces headwinds. Rising living costs, combined with the looming budget, could shift consumer priorities away from non-essential purchases in the months ahead.

Industry experts recommend that retailers remain agile, using promotions and digital strategies to attract cautious consumers while preparing for potential slowdowns in late autumn. The approach of Black Friday, coupled with November’s budget announcements, will test retailers’ ability to balance inventory, pricing, and marketing strategies effectively.

Despite the cautious outlook, the retail sector’s resilience over recent months underscores a key point: consumer behaviour is not solely dictated by macroeconomic conditions. Specific events, product launches, and online accessibility continue to play a decisive role in driving sales growth. This is particularly evident in sectors where innovation and limited-edition releases create urgency and engagement.

Overall, September’s retail figures provide a temporary boost and a reminder that demand can still respond to strong incentives. Retailers, policymakers, and analysts will closely monitor the final quarter of 2025 to gauge whether recent trends reflect a sustainable recovery or a short-lived spike ahead of the festive period.