Boxing Day sales: High Street suffers as shoppers stay home

Lines are still forming at popular shopping spots such as Oxford Street in London.

Early data indicates that Boxing Day shoppers are avoiding the High Street and shopping malls this year, unlike last year.

According to information collected by MRI Software, the number of people visiting UK high streets in the morning has decreased by 10.2% in 2023. Meanwhile, shopping centers have experienced an even bigger drop, with a 13.9% decline in visitors by noon GMT.

The preliminary data suggests that online shopping is still outpacing the conventional Boxing Day sales.

While many stores are likely to experience a busy shopping day on Thursday, big retailers like John Lewis, M&S, and Next have decided to keep most of their locations closed. They expressed a desire to allow their employees some time off during the holiday season.

Lorna was out bargain-hunting with her mom and sister in Liverpool on Boxing Day.

In an interview with BBC News, she mentioned that this year was the first time she chose to go out a little later, reaching Liverpool's shopping area at 10:30.

"My mom and I make it a tradition to come on Boxing Day. Usually, we wake up and start lining up at 5 AM. 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) mentions that this year she opted to join the Boxing Day sales later than she typically would.

In Liverpool, another shopper named Dave humorously mentioned that he usually wouldn't go out shopping on Boxing Day, but he had come to an agreement with his wife.

"I'll go buy some things with her, and in return, she'll join me for the Liverpool game," he stated.

Current information indicates that visits to physical stores are down nearly 36% compared to the time before the pandemic.

Overall, the level of shopping activity on Boxing Day has decreased by 9.4% across all retail locations in the UK by noon, in comparison to December 26 of the previous year.

Experts speaking to BBC News have indicated that physical retail locations are losing profitability. This decline is largely due to the high costs associated with maintaining these stores, including increased energy expenses and, for some businesses, the added costs of paying employees extra for working on Bank Holidays.

E-commerce stores are more cost-effective to run and typically incur lower operating expenses.

Jenni Matthews from MRI Software mentioned that an increase in visitor numbers is expected starting December 27th compared to the same time last year.

However, she noted that this year's drop in shoppers on Boxing Day stands in stark contrast to 2023, where the number of visitors before noon was nearly 3% greater than the year before.

"This might indicate a change in how consumers are acting, shaped by the current economic challenges," she stated.

Recent data from the ONS shows that clothing store sales have dropped to their lowest point since January 2022. Retailers attribute this decline to economic influences.

Retail parks in the UK, known for their free parking and larger store options, performed a bit better, experiencing a decline in visitor numbers of just 6.8% 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, while brands are also launching promotions all year round, particularly during events like Black Friday in November.

"Boxing Day isn't as appealing as it used to be," commented Natalie Berg from NBK Retail. She proposed that the choice of big retailers to stay closed on that day might actually benefit their hiring efforts.

The specialist also suggested that consumers were experiencing "promotion exhaustion."

She mentioned that since some Black Friday discounts started as early as Halloween this year—earlier than ever before—it makes sense that we're feeling exhausted from shopping by Boxing Day.

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 purchasing items to enjoying activities.

She mentioned that people's shopping behaviors have been evolving for over ten years, with an increasing number of consumers opting for online shopping.

Barclays, which claims to handle around 40% of all credit and debit card transactions in the UK, predicts that people in Britain will collectively spend £4.6 billion on Boxing Day, slightly down from the £4.7 billion spent in 2023.

It predicts that a significant portion of expenditures will occur online, just like in 2023, when 63.9% of retail purchases made on Boxing Day were conducted online, based on the bank's statistics.