BDO: December Spending Failed To Boost Retail Sales

• December marks worst set of total monthly sales figures since November 2024
• Total like-for-like retail sales dropped by -1.4% in December
• High street stores suffered sales decline of -0.5% compared to same month in 2025

Total retail sales across discretionary spend categories fell by -1.4% in December, compared to the same month last year. This marks the worst monthly performance since November 2024, according to the latest High Street Sales Tracker from accountancy and business advisory firm, BDO.  

In-store sales fell by -0.5% and online sales by -0.6%, compared to December 2024, as sales volumes declined across channels. This follows disappointing sales figures in November and October, when high street stores recorded below-inflation sales figures, meaning sales volumes across the crucial ‘Golden Quarter’ have been significantly down on the same period last year. 

Sophie Michael, Head of Retail and Wholesale at BDO, commented: 

“After a challenging year, retailers were very much hoping for a strong end to 2025. Instead, we’ve seen a downward trend since early in the year and the worst monthly performance since November 2024.  

“With a late Budget bringing economic uncertainty, the sector saw a disappointing October and November. Retailers were expecting some of the lost sales to be made up in the final weeks leading to Christmas, but December failed to generate some much-needed festive cheer.

“Due to persistent food inflation and high living costs, consumers reduced their discretionary spending over the Christmas period, focusing on festive food, drinks and experiences instead of products. Continued economic uncertainty and low consumer confidence were also driving down spending. 

“This creates further concerns for retailers as we move into 2026. Many will still have significant volumes of leftover stock but if they discount too heavily, they risk destroying their already squeezed margins. 

“With balance sheets already feeling the pressure after a poor Christmas and the increases to cost bases announced in previous Budgets, it will be difficult to provide the necessary investment in new product lines going forward.  

“This leaves little cause for optimism for this year, but despite the hurdles the sector has historically faced, resilience prevails. Once again, 2026 will see retailers having to continue to adapt and find new ways to attract customers to loosen the purse strings.” 

Source : BDO

Image : IR Stone / iStock / 613320612

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