Boxing Day Sales Decline Sharply Again

Boxing Day sales in the UK have experienced a noticeable decline this year. Shoppers are increasingly favoring online shopping over traditional brick-and-mortar stores, leading to muted foot traffic in high streets and shopping centers.

Declining Footfall and Sales Predictions

By 3 PM on Boxing Day, footfall data from MRI Software reported a 1.5% decrease in visits to high streets compared to 2023, and a 0.6% drop in shopping centers. Conversely, retail parks saw a 6.7% increase in visitors. However, this rise was insufficient to offset the overall decline.

Barclays forecasts that total spending during the Boxing Day sales will reach approximately £3.6 billion, a significant drop from the £4.6 billion predicted last year. This decrease corresponds with fewer individuals planning to take advantage of sales compared to the previous year, with online spending also anticipated to decline.

Consumer Spending Trends

Despite the drop, some shoppers are increasing their budgets, averaging an additional £17 compared to last year. However, the overall spending is projected to be less than in prior Boxing Day sales. Karen Johnson, Barclays’ head of retail, noted that continuous financial constraints faced by shoppers throughout the year are influencing their spending behavior.

• High Street visits: Down 1.5% from 2023
• Shopping center visits: Down 0.6%
• Retail park visits: Up 6.7%
• Predicted spending: £3.6 billion (down from £4.6 billion)

Changing Shopping Atmosphere

The atmosphere surrounding Boxing Day shopping has also shifted. Many retailers, such as Next and John Lewis, chose to close their stores for the day. Some shoppers commented on the quieter ambiance, with one Glasgow resident expressing contentment over the slower pace, stating it made for a more enjoyable experience.

This change in consumer behavior seems to stem from broader economic concerns. The pre-Christmas period saw consumers anxious about their finances, particularly after Chancellor Rachel Reeves announced substantial tax increases expected in the coming years. Furthermore, persistent inflation continues to burden household budgets.

Shifts in Retail Patterns

Diane Wehrle, CEO of Rendle Intelligence and Insights, indicated that pre-Christmas spending had only marginally increased, with specific categories such as electronics rising by 8.4%. Despite this, many consumers opted out of the Black Friday deals, showing a reluctance to spend.

The evolving retail landscape, characterized by a surge in online shopping and a prolonged discounting strategy leading up to Christmas, has made Boxing Day sales less pivotal than in years past. As consumer habits continue to change, retailers may need to adapt to the new shopping dynamics.