Demand for Online Jewellery Boosts December Retail Sales
Recent data reveals that the demand for online jewellery played a significant role in bolstering retail sales during December, despite a challenging festive season for many retailers. According to the Office for National Statistics (ONS):
– Retail sales increased by 0.4% from the previous month, largely attributable to the rise in online jewellery purchases, particularly in precious metals like gold and silver.
– While internet shopping thrived, supermarkets saw a slight uptick, and automotive fuel sales also rose. However, non-food retailers—including department, clothing, and household stores—experienced a decline of 0.9%.
– The monthly increase exceeded expectations and followed an unexpected 0.1% decline in November, with sales also down 0.8% in October.
Despite these fluctuations, ONS highlighted some key points:
– Retail sales volumes fell by 0.3% over the last three months of the year when compared to the previous quarter, with declines noted in both supermarkets and online stores.
– The year-end period is crucial for retailers, as the festive season typically generates a substantial portion of annual sales and profits.
In 2025, retail sales saw an overall increase of 1.3%, with both food and non-food stores performing well, alongside non-store retailers (mostly online sellers, but including markets and street vendors). This marks the second consecutive annual growth, although sales remain below pre-pandemic levels observed in 2019.
Highlights from Industry Experts
Hannah Finselbach, senior statistician at ONS, remarked:
– “December sales showed a rebound, particularly for internet retailing, with online jewellers reporting robust demand for gold and silver.”
The ongoing cost of living crisis continues to challenge consumers’ finances, and increased business costs have been a point of contention following recent Budgets. Nicholas Hyett, an investment manager at Wealth Club, emphasized the following:
– “There’s no festive cheer on the high street,” as consumers increasingly turn to online shopping.
– Among online retailers, jewellers had a particularly successful Christmas. In uncertain times, shoppers are gravitating towards versatile jewels that not only make for great gifts but also serve as a long-term store of value.”
Precious Metals as a Safe Haven
Precious metals have become attractive assets amid economic uncertainty, and both gold and silver prices have surged in recent months, reaching record highs recently. This is largely in response to geopolitical tensions, such as proposed tariffs by former US President Donald Trump on various European nations.
Alice Cowley, managing director in Accenture’s retail practice, noted:
– “The modest monthly rise in UK retail sales brings slight relief after a difficult autumn. While food, discounts, and holiday preparations contributed to increased sales, it wasn’t enough to drive significant growth.”
Neil Bellamy, consumer insights director at GfK, provided insight into consumer sentiment:
– “We remain far from consumers feeling optimistic about the future.” The GfK consumer confidence index rose by just one point in January to minus 16, a figure that has not been positive in over a decade.
Looking ahead, Capital Economics predicts consumer spending will remain subdued due to slow wage growth and weak employment conditions. Economist Alex Kerr conveyed that a significant recovery in consumer spending is unlikely throughout 2026.
Key trends impacting the sector include:
– The underwhelming impact of Black Friday deals on overall sales.
– The lackluster performance of Boxing Day shopping events.
With the retail landscape evolving rapidly, it’s evident that online jewellery has carved out a lucrative niche, bringing a glimmer of hope amid broader challenges in the retail sector.