The UK high street was dealt a further blow yesterday as the number of shoppers visiting stores on Boxing Day tumbled.
New figures showed that footfall slumped 9.4 per cent compared to a year earlier as the annual festive discounting season kicked off.
Experts said some bargain hunters had opted to shop online instead of visiting the shops in person.
And the ongoing impact of the cost-of-living crisis meant some consumers were reluctant to splash the cash in the sales.
It comes after separate research by Barclaycard showed Britons are expected to spend £4.6billion in the festive sales – a two per cent drop on 2023 levels.
British retailers had been hoping for a bumper festive shopping period – which is viewed as a make-or-break time for many.
Bosses are grabbling with a £25billion national insurance tax raid and the impact of wage increases.
But in a further setback for retailers, figures published yesterday showed that the total number of shoppers at all retail destinations had fallen 9.4 per cent compared to a year earlier.
Shoppers bargain hunting on Regent Street on Boxing Day. New figures showed that footfall slumped 9.4 per cent compared to a year earlier as the annual festive discounting season kicked off
A person holds shopping bags on Oxford Street. British retailers had been hoping for a bumper festive shopping period – which is viewed as a make-or-break time for many
High streets were the worst affected destination, with a footfall slump of 10.2 per cent at midday on December 26.
It was 6.8 per cent lower at retail parks and 10.1 per cent down in shopping centres, according to MRI Software figures that analyse consumer behaviour.
Across all destinations, footfall was 49.2 per cent lower than pre-pandemic levels in 2019, suggesting that the shift to online shopping during Covid has become permanent.
It 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 said: ‘This could be reflective of the shift in consumer behaviour influenced by the ongoing cost-of-living crisis.’
However, footfall on Christmas Eve was 18 per cent higher in all UK retail destinations compared with last year.
Ms Matthews added: “Could that be suggestive of shoppers front-loading their spending in a pre-Christmas rush?
Shoppers walk past Selfridges. High streets were the worst affected destination, with a footfall slump of 10.2 per cent at midday on December 26
‘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.
