Boxing Day sales slump confirmed as high street and shopping centre visits are down – with Rachel Reeves’ tax hikes blamed for £1billion profits plunge
Boxing Day sales plummeted as shoppers avoided the high street and opted for online stores.
As of 3pm on Friday, visits to UK high streets were down 1.5 per cent year-on-year, while shopping malls saw a 0.6 per cent drop, according to data from MRI Software.
Barclays predicts customers will spend around £3.6bn in Boxing Day sales; this is a decrease from the £4.6bn they had expected in last year’s sales.
The amount spent online is also expected to decrease.
While people are still heading to stores, figures show Boxing Day sales are losing the importance they once had.
Barclays Retail Manager Karen Johnson said shoppers were more cost-conscious and this behavior would be reflected in post-Christmas sales.
The slump in Boxing Day sales comes after the Labor government was accused of sounding the £1bn death knell on the High Street.
Struggling retailers will lose much-needed revenue as consumer confidence collapses amid Rachel Reeves’ tax bombshells.
Shoppers walk along Oxford Street during the Boxing Day sales in London on December 26, 2025
Boxing Day sales slump comes after Rachel Reeves blamed tax rises for a £1bn profit slump on the High Street
The decline in visitors to high streets is due to shrinking household budgets; 69 per cent of people say cost pressures will affect their spending; This rate is higher this year than 47 percent in 2024.
The Conservatives and the Reform Party accused Labor of presiding over a ‘stabilising economy and collapsing consumer confidence’.
Shadow business secretary Andrew Griffith said: ‘Under Labour, Christmas has been reduced to a time to stock up on discounted essentials rather than celebrating with family and friends.
‘As the government presides over a stagnating economy and collapsing consumer confidence, shoppers are tightening their belts and retailers are paying the price.’
Deputy Reform leader Richard Tice said: ‘This government came in promising to get the cost of living under control.
‘Almost two years later, household bills have soared, economic taxes have soared and economic growth has stabilized.
‘It’s no surprise that shoppers are feeling the pinch and choosing to stay at home this Boxing Day rather than support high street businesses.’
