Budget-conscious shoppers set to spend £3.6bn in Boxing Day sales

Key Concepts

• Boxing Day Sales: Traditional post-Christmas sales event in the UK.
• Inflation: A general increase in prices and fall in the purchasing value of money.
• Footfall: A measure of the number of people entering a retail location.
• Retail Parks: Out-of-town shopping areas, often including leisure and hospitality options.
• Cash Strapped: Having limited available funds.
• Sales Volumes: The quantity of goods sold.

Boxing Day 2023: Increased Spending, Decreased Volume & Shifting Consumer Habits

This report details observations from Boxing Day sales in central London and across the UK, highlighting a shift in consumer behaviour driven by economic pressures. While overall spending is projected to be high, the volume of goods purchased is down, and consumers are altering where they shop.

Consumer Sentiment & Spending Habits

Interviews with shoppers on Oxford Street reveal a noticeable change in spending habits. Consumers report that discounts are less significant than in previous years, with one shopper stating, “It is a bit expensive, not similar to last year… Everything has changed now.” Many are purchasing less, as evidenced by a shopper noting they only carried “a bag each this time,” contrasting with previous years where “we usually have bags and we think, 'Oh, why didn't we bring a suitcase with us?'” A strategy of delayed returns to capitalize on potential further price drops – described as “the hustle” – is also emerging. This indicates a heightened price sensitivity among consumers.

Projected Sales Figures & Economic Context

Retailers are anticipating total Boxing Day sales of approximately £3.8 billion. However, this figure is partially attributed to inflation, meaning prices are higher, rather than an increase in the number of items sold. Sales volumes are expected to decline. The report attributes this to “rising bills and higher taxes” leaving consumers “a bit more cash strapped this year.”

The late announcement of the UK budget in late November is also cited as a contributing factor. A representative from a retail association stated that the timing “disrupted” the Christmas shopping season, causing “customers [to be] nervous” and resulting in quieter trading until the days immediately preceding Christmas. The fact that Boxing Day fell on a Friday, followed by a weekend, was seen as a positive factor, with hopes for continued high footfall on Saturday and Sunday.

Footfall Trends & Retail Park Performance

Nationwide footfall data as of midday on Boxing Day showed a flat performance compared to the previous year. However, there were significant variations between different types of shopping destinations. Retail parks experienced an 8.2% increase in footfall, while high streets saw a 2.2% decrease. This divergence suggests a shift in consumer preferences.

The Evolving Role of Retail Parks

The increase in footfall at retail parks is not necessarily solely attributable to shopping. The report notes that retail parks are evolving beyond traditional retail layouts, now incorporating “cinemas, leisure, [and] hospitality options.” This raises the question of whether increased footfall represents increased shopping activity or simply consumers utilizing the broader range of amenities available at these locations. The report posits that people may be visiting retail parks “for a bite to eat or going to the cinema, going to do activities,” rather than exclusively for shopping.

Increased Competition & Retail Challenges

The report concludes that retailers are facing increased competition, both in attracting customers to their stores and in persuading them to spend money. The changing economic landscape and evolving consumer habits necessitate a more competitive approach to retail.

As stated by Gabri Narwan of Sky News, retailers are “having to compete harder than they used to.”