Britons splurge on food, cut back on gifts as retailers warn of tough 2026

Britons prioritised festive food but thought twice about spending on clothing and gifts over Christmas, trading updates from Tesco, Marks & Spencer and Primark showed on Thursday.

December’s solid food sales offered some relief for major retailers, but lingering consumer caution and stubborn inflation cloud the outlook for 2026.

Tesco, Britain’s biggest food retailer, reported a 3.2% rise in underlying UK sales for the six-week festive period, calling it a “strong” Christmas...