Boxing Day footfall down on UK high streets despite discounts
Fewer shoppers have headed to downtown areas and malls looking for Boxing Day sales.
As of noon, the number of shoppers visiting retailers in the UK decreased by 9.4% compared to Boxing Day in 2023, according to information provided by MRI Software.
"The drop in Boxing Day sales might indicate a change in how consumers are shopping, shaped by the current rising living costs," explained Jenni Matthews, the marketing and insights director for retail technology experts.
With foot traffic increasing by 18% on Christmas Eve this year, it's likely that a lot of shoppers started their holiday spending early in a rush to buy gifts, according to Matthews.
In recent years, spending on high streets on December 26 has steadily decreased. This trend is largely due to major retailers like John Lewis and Marks & Spencer deciding to keep most of their stores shut that day, allowing their employees to rest.
The move towards online shopping is allowing people to score early deals without leaving their homes. According to MRI Software's consumer pulse report, 53% of shoppers intended to do at least half of their holiday shopping online, and this trend is likely to persist through the time between Christmas and New Year's.
In total, it's anticipated that consumers will shell out £3.7 billion this Boxing Day.
"The important point about visitor numbers is that they don't capture the entire picture," explained Kien Tan, a senior retail consultant at PwC. "Many stores are no longer open on Boxing Day. It used to be mainly John Lewis, but now Next, M&S, and most large grocery chains are also closed."
Tan noted that a lot of people traveled overseas or took vacations this Christmas, which likely impacted the number of shoppers on the high streets.
Additionally, more intricate family dynamics contributed to the situation, as these families might host multiple gatherings and meals at various locations. Transportation challenges also hindered commerce during the usual kickoff of the January sales.
"I'm not surprised if the number of shoppers was lower than expected," Tan remarked. "Nevertheless, I believe many retailers enjoyed a good Christmas season. Despite the broader economic difficulties, people's disposable income is roughly 10% higher than it was last year due to increased wages, reduced inflation, and lower national insurance contributions. This could be a final flourish for both consumers and retailers. The real test will be in 2025."
Katie Wyle, who leads the shopping center management division in the UK for Unibail-Rodamco-Westfield, the company behind the Westfield shopping centers in London, noted that customers continue to visit their brick-and-mortar stores. This includes one of the few remaining John Lewis locations that operate on Boxing Day.
"Since the start of the holiday shopping season, Westfield London and Westfield Stratford City have welcomed nearly 10 million visitors. With Boxing Day approaching, we expect to surpass that number as hundreds of thousands more come to take advantage of the sales and enjoy a day filled with dining, skating, or catching a movie," Wyle remarked.
