Boxing Day sales: High Street suffers as shoppers stay home
Photo credit: EVN / BBC
Lines continue to form at popular shopping spots such as Oxford Street in London.
According to foot traffic data, shoppers did not visit the High Street and shopping malls as much on Boxing Day this year compared to last year.
Information collected by MRI Software indicated that the number of people visiting high streets in the UK dropped by 6.2% in 2023, whereas shopping centers experienced a 4.2% decrease in attendance.
The numbers indicate that online shopping is still leading the way over traditional Boxing Day sales.
While numerous stores anticipated busy sales on Thursday, big names like John Lewis, M&S, and Next decided to keep most of their locations closed, explaining that they aimed to give their employees some time off during the holiday season.
Lorna was out shopping on Boxing Day, searching for great deals with her mom and sister in Liverpool.
She shared with BBC News that this is the first year she's chosen to leave a little later, reaching Liverpool's shopping area at 10:30.
"My mom and I make it a tradition to come every Boxing Day. Usually, we're up and in line by 5 a.m. We've been doing this for the last 10 to 15 years, but this is the first time we've arrived late," she shared.
Lorna (on the left) mentioned that this year, she chose to wait longer than usual before heading out to the Boxing Day sales.
In Liverpool, another customer named Dave humorously mentioned that although he typically wouldn't go shopping on Boxing Day, he had come to an agreement with his wife to do so.
"I'll join her for shopping, and she'll accompany me to the Liverpool game," he mentioned.
The data indicates that the number of in-store visits is 20.8% lower than what it was before the pandemic.
In general, the number of people shopping on Boxing Day dropped by 4.9% in all retail locations across the UK compared to December 26 of last year.
Experts have informed BBC News that traditional physical stores are seeing a decline in profitability. This is largely due to the high costs associated with operating these locations, including increasing energy expenses and, for certain businesses, the need to pay employees extra for working on Bank Holidays.
E-commerce stores are less expensive to run and typically have lower operational costs.
Jenni Matthews from MRI Software mentioned that an increase in visitor numbers is expected starting from December 27.
However, she noted that the decrease in shoppers this Boxing Day stands in stark contrast to 2023, when the number of people shopping was 4% greater than the year before.
"This might indicate a change in how consumers are acting, shaped by the current cost-of-living challenges," she remarked.
According to data from the ONS, sales in clothing stores have recently dropped to their lowest point since January 2022. Retailers attribute this decline to various economic issues.
Retail parks in the UK, which typically provide free parking and cater more to larger stores, experienced a smaller decline in foot traffic, with visits dropping by just 2.9% compared to the previous year.
In several respects, Boxing Day has lost its status as a significant shopping occasion like it used to be.
Numerous retailers kick off their online sales on Christmas Eve, and brands are also extending their promotions year-round, particularly during events like Black Friday in November.
"Boxing Day has lost its appeal," noted Natalie Berg from NBK Retail. She proposed that the choice of large retailers to stay closed on this day might aid them in attracting new employees.
She also thinks that consumers were experiencing "promotion burnout."
"Given that some Black Friday promotions started as early as Halloween this year, which is the earliest I’ve ever noticed, it's understandable that many of us feel exhausted from shopping by Boxing Day," she stated.
Diane Wehrle, an analyst at Rendle Intelligence and Insights, noted that for those who decide to go out on Boxing Day, the focus has changed from shopping for items to enjoying activities and experiences.
She mentioned that people's shopping behaviors have been shifting for over ten years, with an increasing number of shoppers opting for online purchases.
According to Barclays, which claims to monitor almost 40% of all credit and debit card transactions in the UK, they predict that British consumers will collectively spend around £4.6 billion on Boxing Day, slightly lower than the £4.7 billion spent in 2023.
The bank anticipates that most of the spending will occur online, much like in 2023, when 63.9% of retail purchases on Boxing Day were made online, based on their data.
