UK shoppers splash out at Christmas as online retailers enjoy record breaking year

UK shoppers splashed out a total of £26.9 billion online this holiday season (1st November – 31st December), up 4.1% YoY, with over £500 million spent on Boxing Day alone as bargain hunters continued to search for the best deals, according to Adobe Digital Insights.

Across 2025, online spending reached £118.5 billion, up 2.8% on 2024 and setting a new record for online spending.   

“While online spending for the year grew by a modest 2.8%, UK retailers will be encouraged by a strong end to the year and a particularly good festive period,” says Vivek Pandya, Lead Analyst, Adobe Digital Insights. “Strong online discounts across categories encouraged higher levels of spending, and this year saw consumers lean more heavily on AI to research products and find the best prices.”     

AI

Traffic to retail sites from AI sources grew 329% this holiday period, compared to the same period last year.    

On Boxing Day, AI traffic to UK retail sites increased by 685%. While the base of users remains modest, the uptick shows the value AI can deliver as a shopping assistant. These services were used most in categories including appliances, apparel, video games, personal care products, jewellery, electronics, sporting goods.   

UK shoppers splash out at Christmas as online retailers lay claim to a record breaking year

Discounts

Consumers benefited from strong online discounts this season, with great deals in electronics, where discounts peaked at 20.9% off listed price (vs. 19.6% in 2024). This season’s deals also drove consumers to purchase higher ticket items in categories such as electronics, sporting goods and appliances, propelling e-commerce growth.    

BNPL usage   

UK shoppers spent £3.7 billion through buy now pay later services during the holiday period, accounting for 13.7% of total online spend for the season and up 2.2% compared with the holiday period in 2024.    

Usage peaked in December this year as shoppers sought to make the most of flash sales during Cyber Weekend.  £1.9 billion was spent using BNPL services in December – the highest monthly spend through BNPL ever, overtaking the previous record of £1.88 billion set in December 2024.   

The biggest single day for BNPL usage was Cyber Monday, which saw shoppers spend £157.5 million using the services.      

2025 full year   

A record-breaking £118.5 billion was spent online during 2025, up 2.8% on the £115.3 billion spent in 2024.    UK shoppers spent £17.8 billion through BNPL services in 2025, up 1.3% on the 2024 total of £17.6 billion. 

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by VenHub Global, 3D Cloud and EdTech Innovation Hub.

Check out our finalists here.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2026 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2026 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.