{"id":990404,"date":"2026-01-10T13:16:48","date_gmt":"2026-01-10T13:16:48","guid":{"rendered":"https:\/\/ukpostcode.org\/content\/?p=990404"},"modified":"2026-01-10T13:16:48","modified_gmt":"2026-01-10T13:16:48","slug":"uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion","status":"publish","type":"post","link":"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/","title":{"rendered":"UK Retail Sees Strong Food Sales but Weak Christmas for Fashion"},"content":{"rendered":"<ul>\n<li><\/li>\n<\/ul>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Summary_The_Big_Picture\" title=\"Summary: The Big Picture\">Summary: The Big Picture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Case_Studies_Key_Retailers\" title=\"Case Studies: Key Retailers\">Case Studies: Key Retailers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Marks_Spencer_M_S_%E2%80%94_Food_Up_Fashion_Down\" title=\"Marks &amp; Spencer (M&amp;S) \u2014 Food Up, Fashion Down\">Marks &amp; Spencer (M&amp;S) \u2014 Food Up, Fashion Down<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Tesco_Sainsburys_%E2%80%94_Grocery_Growth_Weak_Non-Food\" title=\"Tesco &amp; Sainsbury\u2019s \u2014 Grocery Growth, Weak Non-Food\">Tesco &amp; Sainsbury\u2019s \u2014 Grocery Growth, Weak Non-Food<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Primark_Non-Food_Players\" title=\"Primark &amp; Non-Food Players\">Primark &amp; Non-Food Players<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Wider_Retail_Comments_Analysis\" title=\"Wider Retail Comments &amp; Analysis\">Wider Retail Comments &amp; Analysis<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Consumer_Behavior\" title=\"Consumer Behavior\">Consumer Behavior<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Retail_Sector_Outlook\" title=\"Retail Sector Outlook\">Retail Sector Outlook<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Expert_Perspectives\" title=\"Expert Perspectives\">Expert Perspectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Key_Takeaways\" title=\"Key Takeaways\">Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Overview_Mixed_Christmas_Trading_for_UK_Retail\" title=\"Overview: Mixed Christmas Trading for UK Retail\">Overview: Mixed Christmas Trading for UK Retail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Case_Study_A_%E2%80%94_Marks_Spencer_M_S\" title=\"Case Study A \u2014 Marks &amp; Spencer (M&amp;S)\">Case Study A \u2014 Marks &amp; Spencer (M&amp;S)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Food_A_Standout_Performer\" title=\"Food: A Standout Performer\">Food: A Standout Performer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Fashion_Non-Food_Under_Pressure\" title=\"Fashion &amp; Non-Food: Under Pressure\">Fashion &amp; Non-Food: Under Pressure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Case_Study_B_%E2%80%94_Sainsburys_Supermarket_Argos\" title=\"Case Study B \u2014 Sainsbury\u2019s (Supermarket + Argos)\">Case Study B \u2014 Sainsbury\u2019s (Supermarket + Argos)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Solid_Grocery_Growth\" title=\"Solid Grocery Growth\">Solid Grocery Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Weak_Non-Food_Argos\" title=\"Weak Non-Food &amp; Argos\">Weak Non-Food &amp; Argos<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Case_Study_C_%E2%80%94_Broader_Fashion_Non-Food_Segment\" title=\"Case Study C \u2014 Broader Fashion &amp; Non-Food Segment\">Case Study C \u2014 Broader Fashion &amp; Non-Food Segment<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Primark_ABF\" title=\"Primark (ABF)\">Primark (ABF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Next\" title=\"Next\">Next<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Comments_Analysis_from_Retail_Leaders\" title=\"Comments &amp; Analysis from Retail Leaders\">Comments &amp; Analysis from Retail Leaders<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Consumer_Behaviour_Insights\" title=\"Consumer Behaviour Insights\">Consumer Behaviour Insights<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Market_Reaction_Broader_Implications\" title=\"Market Reaction &amp; Broader Implications\">Market Reaction &amp; Broader Implications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/ukpostcode.org\/content\/uk-retail-sees-strong-food-sales-but-weak-christmas-for-fashion\/#Key_Takeaways-2\" title=\"Key Takeaways\">Key Takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Summary_The_Big_Picture\"><\/span><strong>Summary: The Big Picture<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u2022 <strong>Food sales<\/strong> performed strongly over the Christmas period, with major supermarkets and grocery retailers reporting solid growth as consumers prioritized festive food spending. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<br \/>\n\u2022 <strong>Fashion and non-food categories<\/strong> \u2014 including clothing, homeware and general merchandise \u2014 lagged behind, with many retailers noting subdued consumer confidence, weaker footfall, and lower discretionary spend. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<br \/>\n\u2022 <strong>Overall sentiment<\/strong> in the sector is mixed: food and grocery segments provided a boost, but broader retail health remains challenged by economic pressures and consumer caution. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Studies_Key_Retailers\"><\/span><strong>Case Studies: Key Retailers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Marks_Spencer_M_S_%E2%80%94_Food_Up_Fashion_Down\"><\/span><strong>Marks &amp; Spencer (M&amp;S) \u2014 Food Up, Fashion Down<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Food Sales:<\/strong> M&amp;S reported a <strong>5.6% like-for-like increase<\/strong> in food sales over the Christmas quarter to December 27, attracting a <em>record number of customers<\/em>. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/m-s-reports-5-6-rise-in-christmas-food-offsetting-slip-in-clothes-ce7e59ddd98ff225?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/li>\n<li><strong>Fashion &amp; Non-Food:<\/strong> By contrast, its <strong>Fashion, Home &amp; Beauty divisions saw like-for-like sales decline ~2.9%<\/strong>, reflecting weaker demand in these categories. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/m-s-reports-5-6-rise-in-christmas-food-offsetting-slip-in-clothes-ce7e59ddd98ff225?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/li>\n<li><strong>Causes:<\/strong> The company attributed weaker fashion performance partly to subdued consumer confidence, milder weather reducing winter clothing spend, and lingering effects of a cyber-attack earlier in 2025 that disrupted online operations. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/m-s-reports-5-6-rise-in-christmas-food-offsetting-slip-in-clothes-ce7e59ddd98ff225?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/li>\n<li><strong>Market Reaction:<\/strong> Despite the mixed results, M&amp;S shares <strong>rose around 3%<\/strong> on the trading update, showing markets rewarded strong food performance even as non-food struggled. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/m-s-reports-5-6-rise-in-christmas-food-offsetting-slip-in-clothes-ce7e59ddd98ff225?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/li>\n<\/ul>\n<p><strong>Commentary:<\/strong> M&amp;S\u2019s results illustrate how <em>food retail can act as a stabilizer<\/em> in tough consumer conditions \u2014 balancing out softness in discretionary categories. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/m-s-reports-5-6-rise-in-christmas-food-offsetting-slip-in-clothes-ce7e59ddd98ff225?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/p>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"Tesco_Sainsburys_%E2%80%94_Grocery_Growth_Weak_Non-Food\"><\/span><strong>Tesco &amp; Sainsbury\u2019s \u2014 Grocery Growth, Weak Non-Food<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Tesco:<\/strong> Reported <strong>a rise in UK food sales<\/strong> over the festive period, with market share at decade highs \u2014 although overall growth was slightly below summer\u2019s performance. (<a title=\"Britons splurge on food, cut back on gifts as retailers warn of tough 2026 | MarketScreener UK\" href=\"https:\/\/uk.marketscreener.com\/news\/britons-splurge-on-food-cut-back-on-gifts-as-retailers-warn-of-tough-2026-ce7e59dddb8cf12c?utm_source=chatgpt.com\">MarketScreener UK<\/a>)<\/li>\n<li><strong>Sainsbury\u2019s:<\/strong> Like-for-like <strong>grocery sales rose ~5.4%<\/strong>, but <strong>general merchandise and clothing sales declined<\/strong>, with its Argos non-food arm underperforming. (<a title=\"UK's Sainsbury's faltering non-food sales dent festive grocery cheer | Financial News\" href=\"https:\/\/www.lse.co.uk\/news\/uks-sainsburys-reports-christmas-sales-rise-and-sticks-to-profit-outlook-i6pf5j9fzlhlf9l.html?utm_source=chatgpt.com\">London South East<\/a>)<\/li>\n<li><strong>Retail Conditions:<\/strong> Sainsbury\u2019s CEO described broader retail conditions as <em>challenging<\/em>, with cautious customers and competition from discount and online players impacting non-food trades. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/li>\n<\/ul>\n<p><strong>Commentary:<\/strong> Tesco and Sainsbury\u2019s results echo a wider <strong>polarization in retail demand<\/strong>: staples and festive foods remain resilient, but discretionary retail \u2014 especially fashion and homeware \u2014 is under pressure. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/p>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"Primark_Non-Food_Players\"><\/span><strong>Primark &amp; Non-Food Players<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Primark:<\/strong> The owner of Primark flagged <em>\u201cdifficult\u201d Christmas trading<\/em>, with its shares sliding significantly amid weak clothing demand in both the UK and Europe. (<a title=\"FTSE 100 Live: Primark owner slides on guidance cut, M&amp;S and BAE Systems rally\" href=\"https:\/\/www.standard.co.uk\/business\/ftse-100-live-08-january-bluechip-stock-market-records-m-s-tesco-sales-trading-updates-retail-christmas-performance-corporate-earnings-oil-price-b1265480.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/li>\n<li><strong>Other Non-Food:<\/strong> Many high-street fashion and general merchandise retailers saw softer sales and greater discounting, reflecting consumer spend tightening given inflation and economic uncertainty. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/li>\n<\/ul>\n<p><strong>Commentary:<\/strong> Primark\u2019s warning highlights that <strong>wider non-food retail weakness is not isolated<\/strong> \u2014 fashion brands and general merchandise chains are struggling with lower discretionary spending. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Wider_Retail_Comments_Analysis\"><\/span><strong>Wider Retail Comments &amp; Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Consumer_Behavior\"><\/span><strong>Consumer Behavior<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Analysts attribute the split between food and fashion sales to:<\/p>\n<ul>\n<li><strong>Cautious spending:<\/strong> Shoppers prioritised essentials (groceries, festive meals) over discretionary items like new outfits or home gifts. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/li>\n<li><strong>Economic pressures:<\/strong> Persistent inflation, higher costs of living and jobs uncertainty weighed on confidence. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/li>\n<li><strong>Discount competition:<\/strong> Aggressive pricing from online platforms and value retailers further pressured traditional fashion and non-food channels. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Retail_Sector_Outlook\"><\/span><strong>Retail Sector Outlook<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Retail leaders remain <strong>cautious about 2026<\/strong>, predicting continued headwinds rather than a strong rebound, even as they focus on value-led offers and investments to attract cost-conscious shoppers. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Expert_Perspectives\"><\/span><strong>Expert Perspectives<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Retail Economics:<\/strong> Analysts see a <em>\u201cstark divide\u201d<\/em> emerging:<\/p>\n<blockquote><p><em><strong>Food retailers capitalise on cautious festive budgets, while general merchandise struggles with fragile consumer sentiment and footfall decreases.<\/strong><\/em> (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/p><\/blockquote>\n<p><strong>Market Observers:<\/strong> The mixed picture suggests that while <strong>UK retail isn\u2019t collapsing<\/strong>, the <em>composition of growth is uneven<\/em> \u2014 with defensive categories like groceries outperforming discretionary sectors. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span><strong>Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Food and grocery sales<\/strong> were notably robust over Christmas \u2014 often outperforming expectations or historical trends. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<br \/>\n<strong>Fashion and non-food retail<\/strong> lagged, with several major players reporting declines or warning of tougher conditions ahead. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<br \/>\n<strong>Consumer behavior<\/strong> reflects tightening wallets and selective spending, meaning essentials take priority over discretionary purchases. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<br \/>\n<strong>Retail outlook for 2026<\/strong> remains cautious, with sector leaders bracing for continued economic challenges. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<p>Here\u2019s a <strong>detailed, up-to-date look at how UK retail performed over Christmas 2025<\/strong>, with <strong>case studies showing strong food sales but weak fashion and non-food results<\/strong>, plus direct <strong>comments from industry leaders and analysts<\/strong>.<\/p>\n<ul>\n<li><\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Overview_Mixed_Christmas_Trading_for_UK_Retail\"><\/span><strong>Overview: Mixed Christmas Trading for UK Retail<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>During the Christmas period, UK consumers shifted spending patterns, <strong>prioritising food and groceries<\/strong> while cutting back on <strong>fashion, gifts and non-essentials<\/strong>. This left headline food sales looking solid \u2014 but fashion and broader non-food categories lagging. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<p>Retailers and economists describe this as a <strong>polarised retail landscape<\/strong> where food resilience contrasts sharply with weak discretionary spending, shaped by cautious consumer confidence and economic pressures. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study_A_%E2%80%94_Marks_Spencer_M_S\"><\/span><strong>Case Study A \u2014 Marks &amp; Spencer (M&amp;S)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Food_A_Standout_Performer\"><\/span><strong>Food: A Standout Performer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>M&amp;S reported a <strong>5.6% year-on-year rise in like-for-like food sales<\/strong> in the quarter ended 27 December, driven by <strong>premium festive ranges and record customer numbers<\/strong>. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/ms-reports-56-rise-christmas-food-offsetting-slip-clothes-2026-01-08\/?utm_source=chatgpt.com\">Reuters<\/a>)<\/p>\n<p>CEO Stuart Machin said food sales <em>\u201ccontinue to outperform\u201d<\/em> their markets and that the retailer increased market share as consumers shopped for Christmas meals and party products. (<a title=\"M&amp;S stock rises after solid Christmas sales despite fashion dip By Investing.com\" href=\"https:\/\/uk.investing.com\/news\/stock-market-news\/ms-reports-solid-christmas-trading-with-record-customer-numbers-4443401?utm_source=chatgpt.com\">Investing.com UK<\/a>)<\/p>\n<p><strong>Impact:<\/strong> Food strength cushioned the broader business, and M&amp;S shares rose ~3% on the update, trimming annual losses. (<a title=\"M&amp;S' Christmas food sales thrive but fashion falters\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/ms-reports-56-rise-christmas-food-offsetting-slip-clothes-2026-01-08\/?utm_source=chatgpt.com\">Reuters<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Fashion_Non-Food_Under_Pressure\"><\/span><strong>Fashion &amp; Non-Food: Under Pressure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>By contrast, <strong>fashion, home and beauty saw like-for-like sales fall about 2.9%<\/strong>, as weaker consumer confidence, fewer high-street visits, and last year\u2019s cyber-attack stock issues hit performance. (<a title=\"M&amp;S stock rises after solid Christmas sales despite fashion dip By Investing.com\" href=\"https:\/\/uk.investing.com\/news\/stock-market-news\/ms-reports-solid-christmas-trading-with-record-customer-numbers-4443401?utm_source=chatgpt.com\">Investing.com UK<\/a>)<\/p>\n<p>Analyst Dan Coatsworth noted M&amp;S \u201cwent back to its old days\u201d of food offsetting weaker clothing trade. (<a title=\"M&amp;S stock rises after solid Christmas sales despite fashion dip By Investing.com\" href=\"https:\/\/uk.investing.com\/news\/stock-market-news\/ms-reports-solid-christmas-trading-with-record-customer-numbers-4443401?utm_source=chatgpt.com\">Investing.com UK<\/a>)<\/p>\n<p><strong>Key takeaway:<\/strong> M&amp;S\u2019s case clearly shows the <strong>divergence between defensive grocery buying and softer fashion demand<\/strong> during the holiday season.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study_B_%E2%80%94_Sainsburys_Supermarket_Argos\"><\/span><strong>Case Study B \u2014 Sainsbury\u2019s (Supermarket + Argos)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Solid_Grocery_Growth\"><\/span><strong>Solid Grocery Growth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Sainsbury\u2019s reported <strong>a 5.4% rise in grocery sales<\/strong>, outperforming many peers and contributing to a <strong>3.4% overall like-for-like increase<\/strong>. (<a title=\"UK's Sainsbury's faltering non-food sales dent festive grocery cheer | Financial News\" href=\"https:\/\/www.lse.co.uk\/news\/uks-sainsburys-reports-christmas-sales-rise-and-sticks-to-profit-outlook-i6pf5j9fzlhlf9l.html?utm_source=chatgpt.com\">London South East<\/a>)<\/p>\n<p>Premium own-brand ranges \u2014 like <em>Taste the Difference<\/em> \u2014 performed particularly well. (<a title=\"Christmas Shopping: How Retailers Fared Over Festive Period | Supply Chain Magazine\" href=\"https:\/\/supplychaindigital.com\/news\/christmas-shopping-how-retailers-fared-over-festive-period?utm_source=chatgpt.com\">Supply Chain Digital<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Weak_Non-Food_Argos\"><\/span><strong>Weak Non-Food &amp; Argos<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At the same time, its <strong>general merchandise and clothing sales fell ~1.1%<\/strong>, and <strong>Argos saw a 1\u20132% decline<\/strong>, hitting overall sentiment. (<a title=\"UK's Sainsbury's faltering non-food sales dent festive grocery cheer | Financial News\" href=\"https:\/\/www.lse.co.uk\/news\/uks-sainsburys-reports-christmas-sales-rise-and-sticks-to-profit-outlook-i6pf5j9fzlhlf9l.html?utm_source=chatgpt.com\">London South East<\/a>)<\/p>\n<p>CEO Simon Roberts pointed to <strong>inflation concerns, cautious shoppers and stronger online discount competition<\/strong> as headwinds in non-food. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/p>\n<p><strong>Impact:<\/strong> Strong grocery was not enough to buoy the entire group \u2014 Sainsbury\u2019s shares fell around 5% on the mixed figures. (<a title=\"UK's Sainsbury's faltering non-food sales dent festive grocery cheer | Financial News\" href=\"https:\/\/www.lse.co.uk\/news\/uks-sainsburys-reports-christmas-sales-rise-and-sticks-to-profit-outlook-i6pf5j9fzlhlf9l.html?utm_source=chatgpt.com\">London South East<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study_C_%E2%80%94_Broader_Fashion_Non-Food_Segment\"><\/span><strong>Case Study C \u2014 Broader Fashion &amp; Non-Food Segment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Primark_ABF\"><\/span><strong>Primark (ABF)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Primark\u2019s owner Associated British Foods described its UK and European trading as <em>\u201cdifficult\u201d<\/em>, with clothing sales weaker than expected and a profit warning following subdued consumer demand. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | Express &amp; Star\" href=\"https:\/\/www.expressandstar.com\/uk-news\/2026\/01\/09\/retailers-dish-up-strong-christmas-food-sales-but-fashion-lags-behind\/?utm_source=chatgpt.com\">Express &amp; Star<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Next\"><\/span><strong>Next<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Next was an outlier in fashion: <em>full-price sales rose<\/em> and helped it <strong>lift its profit outlook<\/strong> \u2014 showing that <strong>online and price-competitive fashion<\/strong> can still find traction. (<a title=\"UK's Next lifts profit outlook on strong Christmas sales\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-next-edges-up-profit-outlook-after-christmas-sales-beat-expectations-2026-01-06\/?utm_source=chatgpt.com\">Reuters<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Comments_Analysis_from_Retail_Leaders\"><\/span><strong>Comments &amp; Analysis from Retail Leaders<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Consumer_Behaviour_Insights\"><\/span><strong>Consumer Behaviour Insights<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Retail expert Nicholas Found said households <em>\u201cspent smarter\u201d<\/em> \u2014 prioritising food value and selective treats while holding back on discretionary items like clothing and homeware. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | LBC\" href=\"https:\/\/www.lbc.co.uk\/article\/6eae4432359c4fb98b6fd96252b63bab-5HjdQT9_2\/?utm_source=chatgpt.com\">LBC<\/a>)<\/p>\n<p>He noted a <strong>\u201cstark divide\u201d in retail performance<\/strong>: food categories capitalised on cautious spending while general merchandise felt the effects of fragile confidence. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | LBC\" href=\"https:\/\/www.lbc.co.uk\/article\/6eae4432359c4fb98b6fd96252b63bab-5HjdQT9_2\/?utm_source=chatgpt.com\">LBC<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Market_Reaction_Broader_Implications\"><\/span><strong>Market Reaction &amp; Broader Implications<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u2022 Supermarkets such as Tesco and Sainsbury\u2019s gained or defended market share in food, but their non-food segments weighed on overall retail indices. (<a title=\"Britons splurge on food, cut back on gifts as retailers warn of tough 2026\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/britons-splurge-food-cut-back-gifts-retailers-warn-tough-2026-2026-01-08\/?utm_source=chatgpt.com\">Reuters<\/a>)<br \/>\n\u2022 Retailers warned that <strong>2026 could remain tough<\/strong>, with inflation, cost of living pressures and employment uncertainty continuing to temper discretionary spending. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways-2\"><\/span><strong>Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>\u00a0Robust food demand:<\/strong> Grocery and festive food lines helped supermarkets and food-oriented retailers exceed expectations over Christmas. (<a title=\"Food wins, fashion loses in UK retail's underwhelming Christmas\" href=\"https:\/\/www.ft.com\/content\/badf33d1-e908-4010-b186-d17db83152c6?utm_source=chatgpt.com\">Financial Times<\/a>)<br \/>\n<strong>\u00a0Fashion and non-food weakness:<\/strong> Clothing, accessories and general merchandise saw subdued demand, hurting traditional high-street players. (<a title=\"Britons splurge on food, cut back on gifts as retailers warn of tough 2026\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/britons-splurge-food-cut-back-gifts-retailers-warn-tough-2026-2026-01-08\/?utm_source=chatgpt.com\">Reuters<\/a>)<br \/>\n<strong>\u00a0Consumer caution:<\/strong> Analysts attribute the pattern to cost consciousness, inflation effects and falling consumer confidence. (<a title=\"Retailers dish up strong Christmas food sales but fashion lags behind | LBC\" href=\"https:\/\/www.lbc.co.uk\/article\/6eae4432359c4fb98b6fd96252b63bab-5HjdQT9_2\/?utm_source=chatgpt.com\">LBC<\/a>)<br \/>\n<strong>\u00a0Uneven winners:<\/strong> Retailers with flexible online channels or strong food portfolios fared better than those dependent on discretionary sales. (<a title=\"UK's Next lifts profit outlook on strong Christmas sales\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-next-edges-up-profit-outlook-after-christmas-sales-beat-expectations-2026-01-06\/?utm_source=chatgpt.com\">Reuters<\/a>)<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Summary: The Big Picture \u2022 Food sales performed strongly over the Christmas period, with major supermarkets and grocery retailers reporting solid growth as consumers prioritized&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,6],"tags":[],"class_list":["post-990404","post","type-post","status-publish","format-standard","hentry","category-gb-news","category-uk-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK Retail Sees Strong Food Sales but Weak Christmas for Fashion - UK News &amp; 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