The slump in Boxing Day shopper footfall could be influenced by the cost of living crisis, an analyst has said.
Boxing Day footfall was down 9.4% across all UK retail destinations by 12pm in comparison with last year, MRI Software’s OnLocation Footfall Index found.
This came after Barclays forecast that shoppers would spend £236 each on average in the Boxing Day sales this year, but that the majority of purchases would be made online.
Footfall had fallen by 10.2% on UK high streets, 6.8% at retail parks and 10.1% in shopping centres by 12pm on Boxing day compared with 2023, MRI found.
Last year by 12pm, footfall across all destinations was up 2.8% compared with 2022.
This year marks the first drop in Boxing Day retail footfall recorded by MRI Software since before the pandemic.
The decline is a “major contrast”, said Jenni Matthews, marketing and insights director at MRI Software.
She told the PA news agency: “This could be reflective of the shift in consumer behaviour influenced by the ongoing cost-of-living crisis.”
This could be reflective of the shift in consumer behaviour influenced by the ongoing cost-of-living crisis
Jenni Matthews, MRI Software
However, footfall on Christmas Eve was 18% higher in all UK retail destinations compared with last year, she said.
Ms Matthews said: “Could that be suggestive of shoppers front-loading their spending in a pre-Christmas rush?
“A lot of this could be that people have spent as much as they can spend this year, they spent it up (to) and on Christmas Eve.”
Many online sales kicked off between December 23 and the night of Christmas Day and “a lot of people would have grabbed those bargains from the comfort of their own home”, she said.
She added: “I feel like it’s becoming more and more common that people are grabbing the bargains pre-Christmas.”
Footfall is expected to rise on December 27 as people emerge from family visits and shops including Next, Marks and Spencer and John Lewis reopen.
It will also be payday for some as it is the last Friday of the month.
A study by Barclays Consumer Spend found £4.6 billion will be spent on Boxing Day sales this year.
Nearly half of respondents said the cost-of-living crisis will affect their post-Christmas shopping but the forecast average spend is still £50 more per person than it was before the pandemic, with some of that figure because of inflation, Barclays said.
Amid the financial pressures, many people are planning to buy practical, perishable and essential items such as food and kitchenware.
A total of 65% of shoppers are expecting to spend the majority of their sales budget online. Last year, Barclays found 63.9% of Boxing Day retail purchases were made online.
However, a quarter of respondents aim to spend mostly in store – an 11% rise compared with last year.
Karen Johnson, head of retail at Barclays, said: “Despite the ongoing cost-of-living pressures, it is encouraging to hear that consumers will be actively participating in the post-Christmas sales.
“This year, we’re likely to see a shift towards practicality and sustainability, with more shoppers looking to bag bargains on kitchen appliances and second-hand goods.”
Consumers choose in-store shopping largely because they enjoy the social aspect and touching items before they buy, Barclays said, adding that high streets and shopping centres are the most popular destinations.