Boxing Day 2025 has witnessed a significant decline in sales as foot traffic to high streets and shopping centres dropped sharply. By 15:00 on December 26, visits to UK high streets were down by 1.5 percent compared to the previous year, while shopping centres experienced a 0.6 percent decrease, according to data released by MRI Software. Consumer spending during this traditionally busy shopping day is now projected to reach only £3.6 billion, a stark decline from the £4.6 billion forecasted last year.
The downturn in Boxing Day sales reflects broader changes in consumer behaviour, with many shoppers choosing to stay home and shop online instead. As a result, the significance of Boxing Day as a major retail event appears to be waning. Karen Johnson, Head of Retail at Barclays, noted that shoppers are increasingly cost-conscious, a trend likely to persist through the holiday season.
The decline in sales has been attributed to a combination of economic factors, heavily influenced by recent tax increases introduced by the Labour government. Critics, including members of the Conservative Party and Reform UK, have pointed to these tax hikes as contributing to a projected £1 billion drop in profits for high street retailers. The situation has led to accusations that the government is undermining retail businesses and damaging consumer confidence.
In a statement, Shadow Business Secretary Andrew Griffith expressed concern over the impact of current economic policies, saying, “Under Labour, Christmas has been reduced to a time for stocking up on discounted essentials rather than celebrating with family and friends.” He further emphasized that the government’s policies have resulted in a stagnant economy, leaving shoppers tightening their belts and retailers struggling to maintain sales.
Similarly, Richard Tice, Deputy Leader of Reform UK, criticized the government’s handling of the economic situation, stating, “Almost two years later, household bills have soared, economic taxes have skyrocketed, and economic growth has flatlined.” Tice’s remarks reflect a growing sentiment that the current administration’s approach has failed to alleviate the financial pressures faced by consumers.
The data suggests that a significant 69 percent of consumers are now reporting that cost pressures will affect their spending, a sharp increase from 47 percent in 2024. This shift indicates a broader trend of increased financial caution among the public, which is likely to continue impacting retail sales in the coming months.
As the retail landscape adapts to these changes, businesses may need to rethink their strategies to attract customers and encourage spending in a challenging economic environment. The Boxing Day sales slump serves as a reminder of the delicate balance between consumer confidence and government policy in shaping the future of high street retail.
