Boxing Day shopping spree gives UK retailers temporary relief

THE rush to take advantage of post-Christmas sales lifted shopper numbers on Boxing Day, but the boost for retailers may prove short-lived, with the cost-of-living crisis pushing UK consumers to cut back on spending.

Retail tracker Springboard said shopper numbers on Monday (Dec 26) rose 39 per cent from a year ago. In 2021, there were still some pandemic restrictions in place, as well as limited trading hours because the traditional start of sales fell on a Sunday.

In London, the number of shoppers rose 66 per cent from 2021, as planned rail strikes on Dec 26 and Dec 27 failed to deter many bargain hunters.

Scott Parsons, chief operating officer for the UK at mall operator Unibail-Rodamco-Westfield, said its two London sites have had 11 million visitors during the Christmas period so far. This figure was on par with that in 2019. 

“Visitors are not just coming to take advantage of the sales, but also catching up with friends and family for dinner and drinks,” he said, noting that consumers might also take a whirl round the ice rink.

However, this year’s footfall remained below pre-pandemic levels. Parsons suggested that higher footfall may not fully translate into traditional retail sales.

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Rampant inflation has forced some Britons to scale back spending, particularly on discretionary items, as they are bitten by the higher cost of mortgage payments, energy and food. Consumer prices rose 9.3 per cent in November from a year earlier, fuelled by housing, household bills, food and soft drinks.

Boxing Day footfall rose about 44 per cent on high streets, compared with 26 per cent in retail parks.

Software AG retail industry lead Andrew Busby said: “The months ahead will continue to be tough, as winter bites and the financial hangover from Christmas and New Year really starts to be felt in the pocket.” He expected an increase in consumers returning their purchases or using “buy now, pay later” programs to spread the cost. BLOOMBERG