Report Summary

Period covered: 30 November 2025 – 3 January 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online performance

• Online retail sales rose by xx% year-on-year in December (value, non-seasonally adjusted), against an xx% rise a year ago.

• Growth was more subdued compared to previous months, with the Black Friday period excluded from December's trading calendar this year.

Key drivers

• Trading was supported by shifting holiday timing and intense price competition. Although Black Friday deals fell in November's trading window, retailers continued discounting heavily into December.

• Many brought forward Boxing Day promotions, while others extended online sale events into the final weeks of the year to drive conversion.

• December's growth was driven largely by food (+xx%) and clothing and footwear (+xx%), both of which benefitted from seasonal demand and discounting.

• Meanwhile, non store retailing (+xx%), a key proxy for pureplay retailers, continued to outperform multichannel operators (-xx), as agile discounting and focused product ranges helped drive traffic.

• With colder weather and economic caution impacting in person visits, some consumers opted to complete gifting and essentials shopping digitally.

• Footfall rebounded strongly post Christmas, but online channels had already captured much of that trade through pre emptive promotions and early clearance.

Macroeconomic backdrop

• The consumer environment in December was defined by caution and cost control. The GfK Consumer Confidence Index edged up to -xx, flat on a year ago, showing that while sentiment had improved slightly from the lows seen earlier in 2025, underlying confidence remained fragile. Households continued to prioritise essential spending and showed heightened sensitivity to pricing.

• Inflation trends were mixed. Headline CPI rose to xx%, nudged up by seasonal factors such as travel and tobacco duty.

• The macro backdrop remained subdued overall, with GDP posting only marginal growth, while the labour market softened, with falling payrolled employment and ongoing job market pressures.

• Importantly for households, the Bank of England cut interest rates by xx percentage points to xx% in December. This was the fourth cut of the year and indicated growing concern about weak demand and slow growth.

• While mortgage costs remained elevated, the reduction offered some relief to borrowers and supported reasonably better conditions for consumer credit.

• Online retailers benefited from these dynamics, with digital channels offering both convenience and access to competitive pricing.

• Promotional intensity and consumer desire to manage spend with clarity and control kept online firmly embedded as a core part of the Christmas shopping mix.

Outlook

• Online retail moves into 2026 in better shape than many parts of the market, but December's performance does not suggest there has been a material change in demand.

• Demand was present where price and availability aligned, though activity remained closely tied to discounting and stock driven events.

• Confidence has steadied but spending decisions remain focused on essentials or clear savings. Recent interest rate cuts will reduce pressure for some households, although the effect on discretionary spend is likely to be small while income growth remains weak and living costs elevated.

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Proportion of online retail sales by category (Period aligned to ONS trading calendar – 30 November 2025 - 3 January 2026)