Renewed zeal for Boxing Day sales expected to ring up £3.8bn for retailers | Retail industry

UK shoppers are expected to spend £3.8 billion this Christmas, 2% more than last year; Online retailers are experiencing most of this growth, but the high street is also enjoying a renewed appetite for post-Christmas discounts.

Boxing Day remains one of the busiest shopping days of the year, but interest in the high street has waned in recent years as more people opt to look for affordable items from the sofa.

With many sales kicking off from midnight on Christmas Eve, Christmas Day sales are now worth more than £1bn, with 23 million people in the UK expected to shop online shortly after opening their presents. This figure is half a million more than last year, according to analysis by research company GlobalData for Vouchercodes.co.uk.

Boxing Day is expected to record a 1.5% increase in sales compared to last year, on top of store price inflation of 0.6%, according to the latest figures from the British Retail Consortium. That’s less than half the expected 3.4% growth in online sales, according to GlobalData.

Boxing Day could benefit from a lackluster Black Friday sales period this year, with retailers frustrated by demand as shoppers hold out for better discounts, said Kien Tan of consultancy PwC.

“There are signs that Black Friday has reached its peak in the UK and there will still be people looking for deals on Boxing Day. It’s not necessarily a comeback but it’s still there; it’s a British institution.”

He said the hunt for bargains comes as shoppers feel more cautious than a year ago and “there’s a lot more uncertainty and people are holding back.”

Online shopping is on the rise again, driven by busy middle-aged people rather than fashion shoppers, Tan said. They’re likely to be prepared to spend more on furniture and other appliances for the home in post-Christmas sales, as it’s been five years since the pandemic sparked a boom in home improvement spending and many items bought in that period have begun to wear out.

There were signs before Christmas that shoppers were delaying their purchases. On Christmas Eve, fashion retailers launched early sales after a warm autumn and winter, and sales of knitwear and coats were postponed across much of the country. New Look, Boohoo and Sports Direct offered up to 70% off, while Next, John Lewis and Topshop offered 50% off.

Visitor numbers on Tuesday were down 4.5% compared to December 23 last year, as a recovery in cities including London was offset by weaker numbers in towns and shopping centres, according to MRI, a firm that measures retail footfall. Footfall rebounded slightly on Christmas Eve and was up 0.4% on the previous year.

Moji Oshisanya, commercial director at VoucherCodes.co.uk, said: “The increase in sales during the Boxing Day sales period is due to two key factors. We are seeing a revival in appetite for Boxing Day sales, with customer numbers expected to hit a four-year high – a healthy 105.2 million [over a week]. Boxing Day sales are often an opportunity for consumers to treat themselves post-Christmas, and with finances tight, available deals and discounts will be used to stretch budgets even further.

“But increased attendance is not the only factor: inflation is also to blame. Over the wider six-week Christmas period from mid-November to the end of December, sales value is expected to rise by 3.2%, but sales volume is expected to fall by 0.3%. This suggests that while people will spend more and increase overall sales figures, they will not have to take home more products.”

Boxing Day competes with 27 December as the busiest post-Christmas shopping day, and this will be especially true this year as the 27th is a Saturday, so many people will be unemployed.

According to MRI, around 44% of consumers say they plan to hit the high street from Boxing Day, with 29% expecting to go to retail parks and 22% expecting to visit major shopping centres.

High street spending has come under pressure in recent years as some major retailers, including most John Lewis stores, Aldi, Poundland, B&Q, Next and major Marks & Spencer stores, remain closed on Boxing Day.

While many households enjoy a variety of festive meals in different locations due to more diverse family structures, public transport closures may disrupt trade at the traditional start of post-Christmas sales.