London's Festive Shopping Decline Lags Behind UK Trends Amid Online Shift

In the lead-up to New Year’s Eve, festive shopping footfall in London has seen a decline of 8.4% from the previous year, a more modest drop compared to the 11.2% decline observed across the rest of the UK, according to retail analysts at MRI Software. Notably, while shopper numbers in London increased on Black Friday and Christmas Eve, they diminished on Boxing Day. Jenni Matthews, head of marketing at MRI Software, attributes London’s better performance to its appeal as a tourist destination, alongside a noticeable shift towards online shopping which has accelerated since the pandemic.

The retail landscape faced significant challenges in 2024, with over 13,000 High Street stores closing, and 11,341 of these being independent retailers—a staggering 45.5% increase from the previous year. Analysts predict that rising prices and job losses on the High Street are on the horizon, due to new National Insurance contributions announced in October’s budget. Matthews warns that retailers are already preparing for financial difficulties as they move into 2025, indicating tough times ahead for the retail sector as companies braced for the looming economic challenges.