Despite price reductions, Boxing Day footfall on British high streets falls | retail

Despite price reductions, Boxing Day footfall on British high streets falls | retail

Fewer consumers have been heading to high streets and shopping centers in search of Boxing Day discounts.

Footfall at UK retailers fell 9.4% by midday compared to Boxing Day in 2023, according to data from MRI Software.

“The decline in Boxing Day activity may reflect a change in consumer behavior influenced by the ongoing cost of living crisis,” said Jenni Matthews, marketing and insights director at retail tech experts.

With Christmas Eve attendance up 18% this year, many shoppers may have brought forward their spending before giving gifts, Matthews said.

December 26th has seen a gradual decline in high street spending in recent years, particularly since many major retailers such as John Lewis and Marks & Spencer decided to keep most stores closed to give their staff a break.

The shift to online shopping is giving people the opportunity to grab early bargains from the comfort of their own home. MRI Software’s Consumer Pulse Report showed that 53% of shoppers planned to do at least half of their holiday shopping online – a trend that could well continue into the Christmas-New Year period.

In total, shoppers are expected to spend £3.7 billion this Boxing Day.

“The most important thing about footfall is that it doesn’t tell the whole story,” said Kien Tan, senior retail consultant at PwC. “Many shops are now closed on Boxing Day. It used to be just John Lewis but now Next, M&S and most major supermarkets are closing.”

Many people traveled abroad or went on vacation this Christmas, which would affect crowds on shopping streets, Tan added.

There have also been impacts from more complex families who may have multiple celebrations and meals in different locations. Transport difficulties also hampered trade at the traditional start of the January selling season.

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“So I wouldn’t be surprised if the footfall was disappointing,” Tan said. “However, I think many retailers had a decent Christmas – despite all the major economic challenges, disposable income is around 10% better than last year due to higher wages, lower inflation and lower NI (social security). So it could be a last hurrah for shoppers and retailers. The challenge will come in 2025.”

But Katie Wyle, head of UK shopping center management at Unibail-Rodamco-Westfield, the owner of Westfield shopping centers in London, said shoppers were still making their way to physical stores, including one of the few John Lewis stores, which are open on boxing day.

“With almost 10 million shoppers having walked through the doors of Westfield London and Westfield Stratford City so far during the festive shopping season, we will reach well over 10 million visitors on Boxing Day as hundreds of thousands of visitors come to shop the special offers and day out enjoying being outside to eat, ice skating or watching a movie,” Wyle said.

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