The rush to take advantage of post-Christmas sales lifted shopper numbers on Boxing Day, but with the cost-of-living crisis pushing UK consumers to cut back on spending any boost for retailers may prove short-lived.
(Bloomberg) — The rush to take advantage of post-Christmas sales lifted shopper numbers on Boxing Day, but with the cost-of-living crisis pushing UK consumers to cut back on spending any boost for retailers may prove short-lived.
Retail tracker Springboard said Boxing Day shopper numbers rose 39% on 2021, when there were still some pandemic restrictions in place and limited trading hours because the traditional start of sales fell on a Sunday. Footfall, however, remained below pre-pandemic levels.
In London, the number of shoppers rose 66% from the previous year, as planned rail strikes on Dec. 26 and Dec. 27 failed to deter many bargain hunters.
Scott Parsons, chief operating officer UK at mall operator Unibail-Rodamco-Westfield, said its two London sites have had 11 million visitors during the Christmas period so far, on par with 2019.
“Visitors are not just coming to take advantage of the sales, but also catching up with friends and family for dinner and drinks,” or taking a whirl round the ice rink, he added, suggesting that higher footfall may not fully translate into traditional retail sales.
Rampant inflation has forced some Britons to scale back spending, particularly on discretionary items, as the higher cost of mortgage payments, energy and food bites. Consumer prices rose 9.3% in November from a year earlier, fueled by housing, household bills, food and soft drinks.
Boxing Day footfall rose about 44% on high streets, compared with 26% in retail parks.
“The months ahead will continue to be tough as winter bites and the financial hangover from Christmas and New Year really starts to be felt in the pocket,” said Andrew Busby, retail industry lead at software seller Software AG. He expects an increase in consumers returning their purchases or using buy now, pay later programs to spread the cost.
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