Boxing Day Shopping Falls Flat Once Again
Boxing Day shopping has once again failed to ignite excitement as consumers opt for online purchases over traditional high street visits. The latest data paints a concerning picture for retailers eager for a post-Christmas sales boost.
– By 3 PM, visits to UK high streets had decreased by 1.5% compared to 2024, while shopping centers experienced a 0.6% decline, according to MRI Software.
– Retail parks, however, saw a 6.7% increase in footfall, but this uptick wasn’t sufficient to offset the overall downturn in visitor numbers.
– Barclays forecasts consumer spending to reach £3.6 billion during this year’s sales, a notable drop from the £4.6 billion anticipated for 2024, largely influenced by a decrease in the number of shoppers seeking bargains.
– Online spending is also expected to decline, suggesting that the Boxing Day sales event has lost some of its former allure.
Despite a slight increase in shopping budgets—up by £17 compared to last year—overall spending is projected to be lower this Boxing Day. Karen Johnson, head of retail at Barclays, noted that consumers have been on a budget-conscious journey throughout the year, and this trend continues into the holiday shopping period.
A Shift in Atmosphere
While the shopping mood may be muted, some shoppers appreciate the calmer Boxing Day environment. One Glasgow resident mentioned a more enjoyable experience, saying, Everybody’s taking it at their own pace.
However, many retailers took a more conservative approach this year, with major brands like Next, John Lewis, Poundland, Wickes, and Iceland choosing to close their doors on Boxing Day. Another shopper reflected on the quieter scene, stating, It’s definitely a lot quieter than usual, though Lush did have a big, massive queue this year.
Economic Factors at Play
Diane Wehrle, CEO of Rendle Intelligence and Insights, highlighted the financial apprehension felt by consumers leading up to Christmas. She noted, In the run up to Christmas, consumers have really pulled back on spending, particularly pre-Budget. This trend comes on the heels of Chancellor Rachel Reeves’ budget announcement, which foresees up to £26 billion in tax rises by 2029-30, potentially exerting further strain on household finances as inflation remains stubbornly high.
Retail spending data from Visa further supports this cautious sentiment, revealing only marginal increases in consumer expenditures during the festive period. Notably, spending on electronics rose by 8.4% compared to last year, yet many shoppers resisted the temptations posed by Black Friday discounts.
The Evolution of Boxing Day Sales
Ms. Wehrle suggests that the rise of pre-Christmas discounting and the popularity of online shopping have led to Boxing Day sales becoming less significant over recent years. The retail landscape is rapidly evolving, leaving traditional sales events struggling to draw in crowds.
Overall, Boxing Day shopping trends indicate a shift towards more mindful spending, propelled by economic uncertainties and changing consumer behaviors. As we reflect on this year’s subdued shopping environment, it’s clear that the way we engage with sales events continues to transform.