URGENT UPDATE: Boxing Day sales in the UK have plunged by a staggering 20%, as high street visits drop significantly. New data released at 3 PM today shows a 1.5% decrease in foot traffic to high streets and a 0.6% slump in shopping centres compared to last year, raising alarms for retailers across the nation.
Barclays now projects that consumers will spend only around £3.6 billion during this year’s Boxing Day sales, a sharp decline from the £4.6 billion expected in 2024. The shift towards online shopping continues, with predictions suggesting that even online sales will not provide a buffer against the downturn.
According to Karen Johnson, Head of Retail at Barclays, shoppers are increasingly cost-conscious, with 69% of consumers indicating that financial pressures will dictate their spending this year—up from 47% in 2024. This trend signifies a worrying loss of the significance that Boxing Day once held for retail, as families opt for more frugal choices during the holiday season.
The slump follows significant tax hikes introduced by Labour’s Rachel Reeves, which have been blamed for a £1 billion decline in profits for high street retailers. The economic fallout has left many businesses struggling to maintain revenue, with consumer confidence continuing to wane.
Andrew Griffith, Shadow Business Secretary, criticized Labour’s handling of the economy, stating, “
Under Labour, Christmas has been reduced to a time for stocking up on discounted essentials rather than celebrating with family and friends.
” He highlighted the government’s role in fostering a “flatlining economy” that is forcing consumers to tighten their belts.
Reform UK’s deputy leader, Richard Tice, echoed these sentiments, arguing that the government’s failure to control living costs has left shoppers feeling the pinch. He stated, “
Almost two years later, household bills have soared, economic taxes have skyrocketed and economic growth has flatlined.
”
With high street retailers set to face a challenging post-holiday season, the question remains: what will the government do to address the growing crisis in consumer confidence and retail sales? As we move through the holiday season, all eyes will be on the economic strategies that officials will unveil in response to this urgent situation.
Experts predict that unless immediate action is taken, this Boxing Day slump could spell disaster for many struggling retailers, further impacting the overall economy. Stakeholders are urged to monitor developments closely as the repercussions of today’s sales data unfold.
