Boxing Day Sales Expected to Fall by 1 Billion Pounds Amid Economic Pressures

Retailers face a challenging Boxing Day trading period as consumer spending is projected to reach £3.6 billion, representing a decline of approximately £1 billion compared to the previous year. The substantial drop reflects ongoing cost of living pressures that continue to constrain household budgets across the United Kingdom.

Analysis from Barclays, which monitors nearly half of all credit and debit card transactions in the UK, indicates that 26 per cent of consumers intend to participate in the Boxing Day sales, down from 28 per cent last year. The reduction comes at a critical juncture for the retail sector, which relies heavily on the “golden quarter” of trading to bolster annual revenues.

Despite fewer shoppers participating in the sales, those who do venture out or shop online are expected to spend an average of £253, an increase from £236 in the previous year. The data reveals that nearly half of consumers plan to use the sales to purchase regular items at reduced prices, while one in four shoppers will focus exclusively on essential products.

The subdued forecast follows a disappointing performance during the crucial pre-Christmas trading period. Retail sales contracted by 0.2 per cent in November and remain 3 per cent below pre-pandemic levels, underscoring the persistent impact of three years of elevated inflation and interest rates on consumer behaviour. Seven in ten respondents cited price pressures as a significant factor influencing their spending decisions.

Karen Johnson, head of retail at Barclays, noted that shoppers have demonstrated heightened cost consciousness throughout 2025. She observed that artificial intelligence is empowering consumers to shop more strategically and identify optimal deals during the sales period.

The emergence of AI-powered shopping tools marks a significant shift in consumer behaviour. Two in five shoppers indicated they would utilise technology to maximise potential discounts, employing tools that compare prices, generate gift suggestions and establish personalised alerts. However, concerns persist about the technology’s influence on spending habits, with half of those surveyed expressing worry that AI could encourage excessive purchases.

Traditional shopping habits retain their appeal despite the adoption of digital tools. The vast majority of festive shoppers plan to conduct at least some of their purchases in physical stores. Among those visiting the high street, one in four views Boxing Day deal-hunting as an integral Christmas activity, with many citing the value of human interaction as a key motivation.

Family priorities remain paramount for a significant portion of the population. Nearly one quarter of respondents stated that Boxing Day should be dedicated to spending time at home with loved ones rather than pursuing retail bargains.

Clothing emerges as the most sought-after category for Boxing Day shoppers, followed by food and drink, and beauty products. Consumers continue to prioritise securing premium brands at discounted prices, a trend that has remained consistent across recent sales periods.

Johnson characterised Boxing Day as a pivotal moment for retailers, driven by Christmas nostalgia whilst acknowledging that the occasion has evolved to accommodate contemporary consumer demands. The retail sector must navigate the tension between traditional sales expectations and the changing economic landscape that continues to shape spending patterns.