The Boxing Day sales saw a modest start on Sunday, as bargain hunters continued to shift toward online shopping rather than traditional physical stores.
According to data from MRI Software, footfall on London’s high streets showed a 1.5% decrease compared to 2024, while retail parks saw a 0.6% decline by 3 PM. Traffic data for retail areas revealed a 6.7% increase compared to last year, but the rise in visitor numbers was not sufficient to see any general or significant boost in overall attendance.
Investment bank Barclays predicted that Boxing Day spending would reach £3.6 billion, down from the £4.6 billion expected in 2024, with fewer people planning to hunt for exceptional deals compared to last year. A decrease in online spending is also anticipated. Although people are still heading out to the markets, the figures suggest that Boxing Day is no longer the major event it once was.
Barclays’ consumer spending report revealed that those planning to shop increased their budgets by £17 compared to last year, yet overall spending is expected to be lower this year. Karen Johnson, Head of Retail at Barclays, said bargain hunters have been cautious all year, and this restrained behavior has carried over into the Boxing Day sales.
A Quieter Atmosphere
However, one shopper in Glasgow said she preferred the quieter atmosphere of the sales. “Everyone is taking everything in their stride, and I think the sale experience is more enjoyable,” she told the BBC.
While the festive period represents an opportunity for many retailers to offset quieter times of the year, several major brands closed their stores on Boxing Day, including Next, John Lewis, Poundland, Wickes, and Iceland. Another shopper in Glasgow said she goes out every year simply because it is a family tradition. “It’s definitely quieter than usual,” she observed, “but Lush had a very large queue this year.”
Diane Wehrle, CEO of Rendle Intelligence and Insights, said 2025 has been a tough year for many. “In the run-up to Christmas, consumers reduced their spending due to high anxiety, especially before the November budget,” she told the BBC.
In the recent budget, Chancellor Rachel Reeves revealed tax increases of up to £26 billion in 2029-2030, which the Office for Budget Responsibility predicts will ensure the UK tax burden reaches a historic peak of 38% of GDP in 2030-2031. This means additional pressure on household budgets as inflation—the rate at which prices rise—remains stubbornly high, despite falling from the peaks seen in recent years.
For businesses, the rise in the minimum wage and the national insurance increase announced last year mean they are paying higher costs in a slow-growth economy. Holiday spending data from Visa showed that in the lead-up to Christmas, overall spending did not rise significantly, though spending on electronics increased by 8.4% compared to the same period last year.
Official retail spending data from the Office for National Statistics for November also revealed that many bargain hunters resisted the allure of Black Friday discounts, and the start of Christmas sale campaigns did not draw in shoppers. Ms. Wehrle stated that the extension of discounts before Christmas and the rise of e-commerce mean that Boxing Day has “truly become less important” over the past two years.
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