Gold and tech drive strong online retail sales

UK retail sales have defied expectations, rising for the fourth consecutive month in a trend driven by a surge in online purchases of gold and new tech gadgets.

Monthly sales volumes rose by 0.5% in September 2025, according to new figures from the Office for National Statistics (ONS). This performance beat the expected decrease of -0.2%, offering a positive sign amid concerns over a slowing British economy.

Online retailing was the key driver of growth. The amount spent online in the third quarter (July to September) was 3.5% higher than the preceding quarter and a significant 5% higher than the same period last year. Online sales volumes reached their highest level since February 2022.

A major contributor to this online boom was the strong demand reported by non-store retailers for gold jewellery. This coincided with a period of market turbulence that saw gold prices surge to record highs.

Head of Consumer Research at Parcelhero, David Jinks, suggested that “canny Brits may have spent their money on a safe investment” as the volatility of markets made gold a perceived safe haven. UK economist Alex Kerr also noted the strong demand for gold jewellery could be a result of the “surging gold prices.”

In the tech sector, sales were boosted over the summer by two major product launches: Nintendo’s long-awaited Switch 2 gaming console and Apple’s new iPhone 17.

Overall, retail sales volumes between July and September were 0.9% higher than the previous three months. Furthermore, above-inflation pay increases and interest rate cuts have reportedly given consumers a little more confidence to spend, according to AJ Bell’s head of financial analysis, Danni Hewson.

Despite the strong figures, some analysts remain cautious. Concerns over weak employment, high inflation and looming tax rises have led some to doubt the sustainability of this retail strength.

Retail analysts also noted that a “constant background of running commentary on the upcoming budget” is likely discouraging consumers from discretionary spending, while consumer confidence surveys indicate shoppers are holding back ahead of the crucial Black Friday period.

As a result of the strong online activity, the proportion of sales made online increased from 27.8% in August to 28% in September. Retailers are now hoping these positive figures signal good omens for the upcoming Christmas sales season.