Deloitte comments on ONS retail sales figures

Commenting on today’s ONS retail sales figures, Oliver Vernon-Harcourt, head of retail at Deloitte, said:

“Retail sales were better than expected in the final month of the year, capturing the height of Christmas trading. Some consumers allocated more budget towards spending on gifts and festive treats, with jewellers reporting that precious metals continue to drive demand. Meanwhile, the sizeable increase in online sales represents a flurry of last-minute shopping.

“While 2025 as a whole showed growth, sales volumes still remain below levels seen pre-pandemic. Equally, the last three months, capturing the Golden Quarter, were also disappointing for retailers, with a quarterly drop of 0.3% highlighting cautious consumer spending.

“The outlook for retail in 2026 remains a mixed bag. Some consumers are feeling buoyed by steadying interest rates and inflation, while others continue to adopt more cautious behaviours when making purchasing decisions. Sales and discounts are a priority for many, and retailers will be looking to balance creating value for consumers while seeking ways to attract spending. A positive start to 2026 would be a welcome lift for retailers as they navigate rising costs of their own.”

ENDS