Andrea Felsted, Columnist

UK Retailers Are Bracing for a Budget-Busted Christmas

By cutting back on sequins and offering increased value for money, retailers are anticipating a frugal festive season.

September 24, 2025 at 4:00 AM UTC

Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times.

Rachel Reeves may play Grinch this Christmas.
Photograph: Getty Images/Hulton Archive

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British retailers are bracing for a bumpy Christmas. With the cost of living creeping up again and a government budget scheduled to land in the midst of the festive shopping season, the so-called golden quarter may be somewhat tarnished.

Retail sales have been pretty decent over recent months as a hot, sunny summer prompted consumers to reach for their strappy tops and short-sleeved shirts and fire up their barbecues. Kingfisher Plc, owner of DIY chain B&Q, also enjoyed double-digit growth in demand for kitchens and bathrooms.