Traditional Boxing Day sales have suffered a significant downturn this year, as new data reveals shoppers are increasingly shunning the high street in favour of staying home. The much-anticipated post-Christmas shopping spree appears to be losing its historic lustre, with both physical footfall and overall spending projected to fall.
Footfall Figures Paint a Bleak Picture
According to retail analysts MRI Software, visits to UK high streets were 1.5 per cent lower by 3pm on Friday compared to the same time last year. Shopping centres also felt the chill, experiencing a 0.6 per cent decline in visitor numbers. This tangible drop in physical shoppers translates directly to a worrying revenue shortfall for retailers already battling a tough economic climate.
Barclays bank forecasts that total customer spending during the Boxing Day sales will reach approximately £3.6 billion. While a substantial sum, this marks a stark decrease from the £4.6 billion that was anticipated during the previous year's sales period. Notably, the amount spent online is also expected to fall, indicating a broader pullback in discretionary spending rather than a simple shift from offline to online channels.
Cost-Conscious Consumers and Political Blame Game
Karen Johnson, Head of Retail at Barclays, attributed the trend to heightened financial caution among the public. "Shoppers have been more cost-conscious, and this behaviour is likely to extend into the Boxing Day sales," she stated. This sentiment is backed by data showing that 69 per cent of people say cost pressures will impact their spending this year, a sharp rise from 47 per cent in 2024.
The slump has ignited a fierce political debate. The Conservative Party and Reform UK have squarely blamed the Labour government for the downturn. Shadow business secretary Andrew Griffith criticised the administration, stating, "Under Labour, Christmas has been reduced to a time for stocking up on discounted essentials rather than celebrating with family and friends." He accused the government of presiding over a "flatlining economy and collapsing consumer confidence."
Reform UK deputy leader Richard Tice echoed these claims, arguing that household bills and taxes have soared while growth has stagnated. The political criticism centres on Chancellor Rachel Reeves's tax policies, which opponents claim have delivered a £1 billion 'death knell' to the High Street, further eroding fragile consumer confidence.
What This Means for the Future of Retail
The collective data and commentary suggest a fundamental shift. While people still venture out for sales, the Boxing Day event no longer commands the pivotal significance it once held in the retail calendar. Struggling retailers, who rely on this period for crucial revenue, are facing a double blow of reduced footfall and more restrained spending per customer.
The figures from London's Oxford Street, a traditional barometer for national retail health, symbolise a wider national trend. With household budgets stretched thin, the era of the lavish Boxing Day shopping spree may be giving way to a more cautious, value-driven approach, reshaping the retail landscape as we know it.
