As the Boxing Day shopping frenzy traditionally attracts throngs of consumers, this year saw a significant dip in footfall and sales across the UK. Major retailers opted to remain closed for the holiday, while online shopping continued to dominate, raising questions about the future of in-store retail.
According to Jenni Matthews from MRI Software, a year-on-year rise in foot traffic is expected starting December 27. However, the current statistics paint a bleak picture for in-store shopping. Footfall on UK high streets fell by 6.2% compared to last year, and visits to shopping centres decreased by 4.2%. Retail parks also suffered, experiencing a 2.9% decline in visitors compared with 2022.
Recent figures from the Office for National Statistics (ONS) reveal that sales volumes in clothing stores have reached their lowest level since January 2022. Retailers attribute this decline to a variety of economic factors, including rising energy costs and Bank Holiday overtime pay for staff. Despite these challenges, many retailers still expect brisk trade on Thursday.
Even with the anticipated rebound in foot traffic, the overall activity levels on Boxing Day were down 4.9% across all UK retail destinations compared to December 26, 2022. Natalie Berg from NBK Retail remarked on the changing landscape of Boxing Day shopping, stating, “Boxing Day has lost its shine.” She further explained that the earlier start of holiday promotions has contributed to consumer fatigue: “When you consider that some Black Friday deals began on Halloween this year, which is the earliest I've ever seen, it's no surprise that we're all shopped out by Boxing Day.”
Major retailers such as John Lewis, M&S, and Next made headlines with their decision not to open the majority of their stores on Boxing Day. This strategy could potentially aid in recruitment efforts, according to Berg. The shift reflects wider trends in the retail sector, where bricks-and-mortar stores are becoming less profitable due to rising operational costs.
Amidst the decline in physical store visits, online shopping continues to thrive. Barclays projects that Brits will spend approximately £4.6 billion on Boxing Day, slightly down from £4.7 billion in 2023. Notably, the majority of this spending is expected to be conducted online, maintaining a trend observed last year when 63.9% of Boxing Day retail purchases were made via digital platforms.
While many shoppers have adapted to the evolving retail landscape, some still cherish the tradition of in-person shopping. A shopper in Liverpool shared their experience: “Me and mum come every Boxing Day. Normally we're up and queuing at 5 am; we've been here every year for the past 10 or 15 years, but this is the first time we've been late.” Another shopper named Dave expressed the compromise he makes with his mother: “I'll go shopping with her and she'll come to the Liverpool match with me.”
Despite the challenges facing retailers, industry experts remain hopeful for recovery in the days following Boxing Day. The anticipation of increased footfall starting December 27 provides a glimmer of optimism for those in the retail sector.