Boxing Day footfall set to tumble as Christmas spending levels off
Footfall is set to plummet on Boxing Day as Christmas trading takes a hit from low consumer confidence and the rise of Black Friday sales.
Boxing Day footfall will decline 5.2 per cent year, its largest drop in recent years, according to forecasts from retail data firm Springboard.
Footfall on Boxing Day has declined in five out of the past nine years, with the decline increasing every year since 2016, as retailers face tough challenges on the high street.
“It is going to be the worst Christmas we’ve had for a good few years, apart from when we were in the depths of recession,” Springboard marketing and insights director Diane Wehrle told City PM
The figures are the latest blow for brick-and-mortar retailers, which have struggled with the growth of online competitors and a rise in business rates.
Figures released today showed a larger-than-expected growth in sales in November, boosted by Black Friday promotions.
But the rise of Black Friday discounts means shoppers have less incentive to buy in the traditional post-Christmas sales, which used to draw large crowds of bargain hunters.
In addition, uncertainties around Brexit and the rise in 'experience' gifts mean consumers are forking out less over the Christmas period.
Howard Archer, chief economic advisor to the EY ITEM Club, said: “There are signs that consumers are being more cautious at the moment with confidence fragile amid heightened uncertainties and still relatively limited purchasing power, despite some recent pick-up in earnings growth.”
Expenditure over the festive period is expected to hit a record £18bn this year, according to research from Colliers International.
But despite this new high, Christmas spending has increased by only five per cent since 2016, in a sign that festive expenditure is beginning to plateau.
“This increase comes nowhere near the levels of growth witnessed in previous years,” said Oliver Kolodseike, senior property economist at Colliers.
“This ‘levelling off’ in Christmas spending could be a result of suppressed consumer confidence, stalling house price growth and an uncertain economic outlook as Brexit approaches,” he added.