Shining Bright: Online Jewellers Lead Retail Recovery Amid Economic Challenges

December’s retail sales have seen a 0.4% increase month-over-month, primarily driven by a significant demand for online jewellery. According to the Office for National Statistics (ONS), this rise comes despite a challenging festive season for many retailers. Reports indicate that jewellers experienced heightened interest in precious metals like gold and silver, as internet shopping thrived, alongside slight increases in supermarkets and sales of automotive fuel.

This unexpected monthly rise follows a 0.1% drop in November, which already marked a significant decline following a 0.8% decrease in October. Over the last quarter of 2025, retail sales volumes dropped by 0.3%, reflecting the volatility of the market, particularly affecting non-food retailers such as department and clothing stores which fell by 0.9%.

Retail sales overall, however, were up 1.3% in 2025, indicating a positive trend for both food and non-food stores as well as online retailers. Nevertheless, these figures remain below pre-pandemic levels from 2019.

ONS senior statistician Hannah Finselbach pointed out that December saw a rebound in sales, especially in internet retailing, where online jewellery stores had a particularly successful month. Investment manager Nicholas Hyett commented that the shift towards online shopping highlights a trend where shoppers are now opting for dual-purpose jewels that serve as meaningful gifts while also acting as a store of value during economic uncertainty.

Rising prices for gold and silver have made them attractive as safer assets amidst market turbulence, especially as they reached record highs amid investor responses to geopolitical tensions. Alice Cowley, managing director at Accenture, noted that while the sales increase in December provided some relief, it was not sufficient for significant growth in the retail sector.

Consumer sentiment remains cautious, with GfK reporting that the consumer confidence index is still teetering at minus 16, a stark reminder that the economy is still fraught with uncertainty, making any recovery delicate and gradual. As UK economist Alex Kerr emphasized, weak employment prospects and slow wage growth are projected to hinder robust consumer spending in 2026.