Boxing Day footfall has increased slightly, but is still well below the pre-pandemic level. Several high street chains have remained closed.
Retailers are bracing themselves for a weak Christmas season as the UK economy stagnates due to the cost of living crisis.
According to preliminary data provided by MRI Software, a retailer data company, at midday on Boxing Day retail footfall was up 1.4% compared to a year ago, thanks to the visits to high street and retail parks. Footfall in 2019 was down about 30% compared to levels before the first lockdown on coronavirus.
John Lewis, Marks & Spencer and Next, as well as the discounters Poundland, Home Bargains and Poundland, did not open their branches on Boxing Day. Aldi and Waitrose, along with many Lidl branches, remained closed on Boxing Day, just as they did in previous years.
Large queues did form, however, outside stores including Harrods Primark Newcastle, Selfridges London and Lush Liverpool.
Diane Wehrle is the CEO of Rendle Intelligence and Insights. She said that she expected to see a drop in store visits by about a quarter from 2019. However, she believed that locations with more leisure options, such as bars and restaurants, may have done better.
Analysts expect sales volumes to be lower than in recent years, even if visits increase. However, the sales value could rise due to inflation.
The Bank of England is a central bank that has been established to oversee the financial system. Raising interest rates steadily To try and calm inflation, the rate will be reduced from 0.1% at the end of 2021 to 5.25% 2 years later. This has increased borrowing costs for households, and will slow down economic growth. A buffer of savings accumulated during pandemic locksdowns will also slow economic growth. The majority of the money has been spent .
Richard Lim, chief executive of Retail Economic and a consultant, said that Boxing Day sales would be subdued. The cost of Christmas will be weighed against a backdrop of tightened budgets and a difficult year.
Lim said that the Boxing Day sale has become less important for retailers over the years. This is partly because of the increase in discounts prior to Christmas, including “Black Friday”, and “Cyber Monday” , which are held in November.
Lim said that the economy is causing retailers to order more cautiously, which may result in less stock than usual.
Barclaycard surveyed 2,000 UK consumers and found that the budgets set aside for sales after Christmas were 10% higher than in 2022, or £253, even when inflation is taken into consideration. The company stated that shopping for sales could be spread out over more days due to the increase in online shopping including Christmas day.
Karen Johnson, head of retail for Barclays said: “While Boxing Day is still the most popular time to bargain hunt, retailers no longer put all their eggs into one basket, but instead spread out their discounts in order to boost demand. This is very similar to the early Back Friday deals we saw in November.
The earlier start will allow some retailers to sell out of their sales stock before January. This could mean that spring products are on the shelves sooner than anticipated.
predicted that shoppers would spend £3.7bn during Boxing Day. This is 3% lower than the previous year.