Total retail sales across discretionary spend categories fell 1.4% year on year in December, marking the worst monthly performance since November 2024, according to the latest High Street Sales Tracker from BDO. 

“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,” commented Sophie Michael, Head of Retail and Wholesale at BDO.

In-store sales declined 0.5%, while online sales fell 0.6%, compared with December 2024, as volumes declined across channels and shoppers focused on festive food, drink and experiences rather than products.

This latest data follows disappointing results in both October and November, when high street stores recorded below-inflation sales growth, leaving volumes across the Golden Quarter significantly down on the same period in 2024. 

“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,” Michael added.

“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.”