Decline in High Street Shoppers Marks Boxing Day Sales

Vithanage Erandi Kawshalya Madhushani Jade Times Staff

V.E.K. Madhushani is a Jadetimes news reporter covering Business.

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Image Source : Faarea Masud

A Shift Toward Online Shopping Amid Rising Costs and Changing Consumer Habits 

Boxing Day has traditionally been a major shopping event, with bustling high streets and shopping centres teeming with deal hunters. However, data from this year indicates a significant decline in footfall compared to 2023, reflecting a growing shift toward online shopping and changing consumer behavior influenced by economic challenges.

Falling Footfall Across the UK

Morning footfall on UK high streets was down by 10.2%, while shopping centres experienced an even steeper drop of 13.9%, according to early data from MRI Software. Retail parks fared slightly better, with only a 6.8% decrease in visitors, possibly due to free parking and larger store formats. 

In-store visits remain 36% below pre-pandemic levels, highlighting the lingering impact of changing shopping habits and economic uncertainties. By midday on Boxing Day, overall retail activity levels across the UK had dropped 9.4% compared to the same day last year. 

Major Retailers Staying Closed

This year, several major retailers, including John Lewis, M&S, and Next, opted to keep most of their stores closed on Boxing Day, choosing to give their employees a well-deserved break during the festive period. This decision may reflect an effort to support staff well-being and boost recruitment efforts, as noted by retail expert Natalie Berg. 

Online Shopping Dominates the Scene

The decline in high street footfall contrasts with the growth of online shopping. Many retailers launched their sales as early as Christmas Eve, offering convenience and accessibility to shoppers. Barclays, which monitors a significant portion of the UK’s credit and debit card transactions, forecasts Boxing Day spending to reach £4.6 billion, with the majority over 63% expected to take place online. 

The cost-effectiveness of operating online stores compared to brick-and-mortar locations is also driving this trend. Physical stores face rising energy costs and additional expenses, such as holiday overtime pay for staff, making them less profitable for retailers. 

Changing Consumer Behavior and "Promotion Fatigue"

Retail analysts attribute the reduced footfall to several factors, including "promotion fatigue." With Black Friday deals starting as early as Halloween, shoppers have become accustomed to year-round sales, diluting the appeal of Boxing Day as a singular shopping event. 

Sales volumes in clothing stores recently fell to their lowest level since January 2022, reflecting a broader trend of cautious consumer spending amid the ongoing cost-of-living crisis. 

Shifting Focus: Experiences Over Goods

Among those who did venture out on Boxing Day, many prioritized spending on experiences rather than physical goods. Diane Wehrle, an industry analyst, highlighted a decade-long shift in consumer habits toward online shopping and a preference for activities over purchases. 

Looking Ahead: The Future of Boxing Day

The decline in footfall on Boxing Day is not only a reflection of the rise of e-commerce but also a response to changing retail strategies and economic pressures. MRI Software anticipates a rebound in in-store visits from December 27, but the traditional significance of Boxing Day as a major shopping day continues to fade. 

As brands spread their promotions throughout the year and consumers increasingly embrace online shopping, the retail landscape is undergoing a transformation. Retailers must adapt to these evolving habits while balancing profitability and customer expectations in a challenging economic climate. 

Boxing Day, once a hallmark of post-Christmas shopping, is losing its traditional allure. With the convenience of online shopping, a prolonged sales season, and shifting consumer priorities, physical stores face declining foot traffic. While some shoppers continue to cherish the festive shopping experience, retailers must innovate to remain competitive in a rapidly changing marketplace.