Boxing Day Blues: High Street Faces Decline as Online Shopping Dominates
On Boxing Day 2023, footfall in UK high streets and shopping centres saw a significant decline compared to previous years, according to data from MRI Software. Specifically, high streets experienced a 6.2% drop in visitors, while shopping centres witnessed a 4.2% decrease. This trend indicates a continuing shift towards online shopping, which has become increasingly prevalent during the traditional Boxing Day sales period.
Many major retailers, including John Lewis, M&S, and Next, opted to keep most of their stores closed to give staff a break during the festive season, further contributing to the lower foot traffic.
Among the shoppers who did venture out, there were notable changes in habits. For instance, Lorna, a long-time Boxing Day shopper in Liverpool, mentioned that she and her mother decided to arrive later than usual this year, highlighting a shift in the traditional early morning rush. Another shopper, Dave, humorously noted he was only shopping because it was part of an agreement with his wife.
Overall, in-store visits on Boxing Day were reported to be 20.8% below pre-pandemic levels. Across all UK retail destinations, total activity was down 4.9% compared to Boxing Day 2022. These figures raise concerns about the profitability of physical stores, especially given rising operational costs such as energy and potential Bank Holiday pay for employees.
Analysts suggest this decline in footfall could also be a result of the ongoing cost-of-living crisis affecting consumer behaviors. There has been a notable drop in clothing sales, with volumes falling to their lowest since January 2022, as reflected in recent ONS figures.
Interestingly, UK retail parks fared slightly better than high streets, with a 2.9% drop in visits. Experts attribute this to their better parking options and larger stores, making them more appealing to shoppers.
The essence of Boxing Day as a significant shopping event has shifted, with many retailers launching discounts online as early as Christmas Eve. Retail analysts like Natalie Berg and Diane Wehrle highlighted this ‘promotion fatigue’ among consumers, suggesting that extensive sales events throughout the year, including those starting around Halloween, have made shoppers less eager to engage with late December promotions.
Barclays forecasts that the total spending for Boxing Day could reach £4.6 billion, down from £4.7 billion in 2023, with a significant percentage, around 63.9%, expected to occur online. As shopping habits evolve, it seems Boxing Day may no longer hold the same retail significance it once did.