December 2025 saw record Christmas grocery sales and a welcome boost in shopper confidence though minimal volume growth suggests that the food and drink industry is still under pressure.
According to the latest sales figures released today (Jan 13), food sales increased by 3.1 per cent year on year in December, against a growth of 1.7 per cent in December 2024. This was below the 12-month average growth of 3.7 per cent.
Non-Food sales decreased by 0.3 per cent year on year in December, against a growth of 4.4 per cent in December 2024. This was below the 12-month average growth of 1.1 per cent.
Overall, total retail sales increased by 1.2 per cent year on year in December, against a growth of 3.2 per cent in December 2024. This was below the 12-month average growth of 2.3 per cent.
According to Helen Dickinson, Chief Executive at the British Retail Consortium, it was a "drab Christmas for retailers", as sales growth slowed for the fourth consecutive month.
"While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse than expected.
"Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales. Despite the disappointing December, 2025 saw stronger sales growth overall, as non-food recovered from its 2024 decline.
“These figures show that consumer spending remains cautious, with households squeezed by the rising cost of living. Now is the time to support struggling families with the cost of food and essentials and give the economy the boost it needs.
"From business rates to the implementation of the Employment Rights Act, there are plenty of opportunities for Government to mitigate costs for retailers and prices for customers," Dickinson said.
Commenting on food and drink sector performance, Sarah Bradbury, CEO, IGD, said, “December saw record Christmas grocery sales and a welcome boost in shopper confidence, as often happens during the festive season.
"However, minimal volume growth highlights that the food and drink industry is still under pressure and nearly half of shoppers told us they were more worried about the cost of Christmas this year.
"Retailers responded to shopper concerns by highlighting meal affordability and heavy discounting on fresh produce. Overall, it points to a Christmas where shoppers sought ways to celebrate whilst carefully balancing budgets.”