Boxing Day used to be one of the biggest retail events of the year, drawing shoppers to stores as they sought out deals on holiday goods. Yet, this year has seen significant shifts, with reports of diminishing crowds and changing behaviors among consumers. Initial data shows foot traffic at UK shopping centers dropping significantly compared to previous years, down 10.2% on High Streets and 13.9% at shopping malls by midday.
Despite the decline, it seems many consumers are still eager to seize the deals, though they are deviated from traditional shopping hours. Lorna, who visited Liverpool’s shopping district for the first time at 10:30 AM, remarked on her unusual change of habit, saying, "Me and mum come every Boxing Day. Normally we're up and queuing at 5am, we've been here every year for the past 10 or 15 years but this is the first time we've been late."
Footfall data from MRI Software has highlighted this trend, indicating overall activity levels across all retail destinations have decreased by 9.4% compared to December 26, 2023. Experts suggest this turn of events reflects shifts driven by sustained consumer caution amid rising inflation and economic uncertainties.
"Boxing Day has lost its shine," commented Natalie Berg from NBK Retail, elaborately drew attention to the retail environment, emphasizing the fatigue shoppers feel due to prolonged promotional seasons starting earlier each year. "When you contemplate some Black Friday deals started on Halloween this year, it's no surprise shopping fatigue has set in by Boxing Day."
While major retailers, such as John Lewis, M&S, and Next, opted to keep most of their stores closed to grant their employees time off, the traditional Boxing Day rush seemed tepid. Many retailers have also shifted their sales focus online, with additional emphasis on bricks-and-mortar stores becoming increasingly uneconomical to operate. Data suggests bricks-and-mortar visits are almost 36% lower than pre-pandemic levels during this period.
Online shopping remains the more favorable option for many. Barclays estimates the total spending by UK consumers today could reach £4.6 billion, marginally lower than last year's £4.7 billion, with 63.9% of transactions expected to be conducted online.
Shoppers’ preferences have evolved over the past decade, with more consumers preferring to shop online, both for convenience and cost-effectiveness. This shift has led analysts like Jenni Matthews from MRI Software to foresee increased footfall from December 27 but still regard this year’s Boxing Day as significantly quieter than past iterations.
Footfall data indicates UK retail parks, which provide free parking and larger stores, only experienced a 6.8% decline compared to last year, demonstrating slight resilience against the broader slump impacting High Streets. This suggests shifting consumer priorities, potentially preferring experiences over traditional shopping.
Diane Wehrle, from Rendle Intelligence and Insights, noted those who did venture out this Boxing Day concentrated more on experiential purchases than on mere goods, pointing out the changing dynamics of consumer spending.
Despite gloomy footfall figures and diminished shopper enthusiasm, there are still pockets of shoppers committed to the Boxing Day ritual. Some find joy and nostalgia tied to the tradition of post-Christmas shopping with family and friends, even if it has changed drastically from years past. Dave, out shopping with his wife, humorously reflected, "I'll go shopping with her and she'll come to the Liverpool match with me."
Moving forward, retail experts are closely monitoring consumer spending patterns to understand the broader impacts these changes could bring about. Economic factors are increasingly influencing shopping habits, leading to prolonged sales seasons across retail chains rather than one or two peak shopping dates.
With these shifts impacting retailer strategies significantly, the Boxing Day experience continues to adapt to consumer preferences shaped by economic realities and daily habits. It appears less of the traditional event it once was and more of a reflection of the modern shopping consumer's view toward holiday retail.
