Traditional Boxing Day shopping made an underwhelming appearance this year, as UK high street footfall declined noticeably. With the ongoing cost-of-living crisis and a broader cultural shift favouring online shopping convenience, British shoppers appear to be rethinking their traditions. Could this signal a lasting change for retailers nationwide?
High Streets Suffer as Footfall Falls
Footfall across UK retailers saw an 8.9% drop by 3pm on Boxing Day compared to 2023, according to MRI Software. The hardest-hit areas were high streets, which recorded a 10.9% decline, followed by shopping centres and retail parks, down by 7.8% and 5.4%, respectively.
Wales led the downturn with a steep 16.9% drop in foot traffic, while Greater London experienced a relatively modest 6.1% decrease. “The decline in Boxing Day activity may reflect a shift in consumer behaviour, influenced by the ongoing cost-of-living crisis,” said Jenni Matthews, marketing and insights director at MRI Software. Matthews also noted that an 18% increase in Christmas Eve footfall suggests many shoppers may have front-loaded their spending.
The Cost-of-Living Crisis and Retail Behaviour
The cost-of-living crisis has undoubtedly changed how Britons approach holiday shopping. With inflation rates and living costs still pressing on household budgets, shoppers are prioritising value and convenience. Online deals, often combined with free delivery options and early holiday sales, provide just this.
Furthermore, the pattern of Boxing Day shopping has been evolving over the years as some of the UK’s biggest retailers—Marks & Spencer, John Lewis, Next, and major supermarkets—have chosen to remain closed. This marks a cultural shift as retail heads opt to prioritise staff welfare or merge sales into pre-Christmas promotions.
However, it’s worth noting that disposable income has seen slight improvement due to factors like higher wages, lower inflation, and reduced national insurance contributions. “It might be a last hurrah for shoppers and retailers,” commented Kien Tan, a senior retail adviser at PwC. But he warned, “The challenge will come in 2025.”
Online Shopping Redefines Boxing Day
The rise of e-commerce continues to play a pivotal role in this transformation. MRI Software’s consumer behaviour report revealed that 53% of shoppers planned to conduct at least half of their Christmas shopping online. Without needing to brave the cold or queues, many found better deals and a more comfortable experience scrolling through digital storefronts on Boxing Day.
Online-first retailers like Amazon and eBay have capitalised on this trend by offering extended sales periods and exclusive discounts unavailable in physical locations. Even major high street brands have invested heavily in their digital presence, making it easy for regular customers to stay loyal through websites and apps.
While physical foot traffic may have dwindled, e-commerce businesses are seeing robust Boxing Day sales contributions, hinting that the data we observe in footfall metrics doesn’t tell the full story.
Regional and Demographic Nuances
Some regions, however, demonstrated resilience. Westfield shopping centres in London reported bustling activity during Boxing Day. Katie Wyle, the head of shopping centre management in the UK for Unibail-Rodamco-Westfield, noted, “With almost 10 million shoppers through the doors at Westfield London and Westfield Stratford City throughout the festive shopping season, Boxing Day will take us well over 10 million.” She highlighted additional draws like dining, ice skating, and cinemas as contributing factors that attract family outings.
On the other hand, regional disparities played a role. Factors like local transportation issues, varying economic pressures, and differing retail offerings contributed to why central hubs fared better than smaller towns or regions like Wales.
What Lies Ahead for Retailers?
Retailers must closely examine these trends as we head into 2025. The decline in high street footfall is likely symptomatic of deeper cultural and economic changes that go beyond just holiday shopping. Future growth will lie in finding adaptive strategies, such as investing in online platforms and blending online-offline customer experiences.
Retail experts also stress the importance of enhancing in-store experiences to reignite interest in physical shopping. This could mean anything from loyalty programmes to evolving retail spaces into multi-functional venues for entertainment and socialising.
Tan from PwC highlights the uncertainty in the year ahead, urging retailers to play both defensive and offensive. “While some may choose to further prioritise cost management, others will double down on customer loyalty strategies, technology investments, and adaptive marketing campaigns.”
Boxing Day Redefined
The UK’s high street struggles on Boxing Day highlight a seismic shift in consumer priorities. While challenges like decreased footfall demonstrate an immediate concern, the opportunities for digital innovation and hybrid shopping environments provide glimmers of hope. Traditional retail may never quite be the same; instead, it has the chance to redefine itself to align with evolving shopper habits.
The question remains—will businesses seize the opportunity to adapt… or become a relic of outdated traditions?
Source
Explore more entrepreneurial insights and success stories at Inspirepreneur, your go-to magazine for business innovation and leadership.
