High street footfall was down in city centres compared to last year’s pre-Christmas rush as cost-of-living pressures continued for many households, according to the latest figures.
The number of shoppers hitting the shops was 5.3 per cent lower on December 23 than the same day last year.
Retailers had hoped for a long-awaited sales bonanza on Monday – expected to be this year’s peak Christmas shopping day – and footfall surged by 28.5 per cent across all UK retail destinations compared with the week before, MRI Software said.
Visits to shopping centres were up 45.5 per cent on last week and retail parks saw a 31.1 per cent increase as consumers sought last-minute gifts and entertained children.
High streets also saw an 1.8 per cent week-on-week increase in visitors.
However, MRI said the year-on-year 5.3 percent drop in footfall on the high street suggested the cost of living was still affecting many families.
This was also reflected in ‘modest’ year-on-year rises recorded in shopping centres and retail parks of 1.4 per cent and 4.9 per cent respectively.
MRI Software’s recent Consumer Pulse report found 51 per cent of consumers were concerned about the rising cost of living over the next six months, driven by higher energy and housing costs during the winter.
Shoppers on Oxford Street in London on December 23 last year, ahead of Christmas Day
There were more lat-minute shoppers on December 23 in 2023 than this year, according to the latest figures. Pictured: Regent Street in London in 2023 (left) and 2024 (right)
Passengers arrive at King’s Cross Station in Central London in time for Christmas Day
Jenni Matthews, marketing and insights director at MRI Software, said: ‘While many are taking to the shops ahead of Christmas Day, this may well be the last splurge before a big spending freeze sets in in the new year for consumers, meaning that retailers should be taking heed of these trends to plan accordingly for a challenging start to 2025.’
On Monday, separate figures suggested this Christmas appeared to have been ‘disastrous’ for retailers, with footfall down 11.4 per cent on last year over the final full week before Christmas.
Even on the final Saturday before Christmas Day, typically the peak shopping day of the year, footfall was just 4.1 per cent higher than the previous Saturday, and only 0.9 per cent higher than the same Saturday a year earlier.
The British Retail Consortium (BRC) has warned of a January spending squeeze.
BRC-Opinium figures suggest public confidence in the economy fell eight points to minus 27 in December.
The public’s spending intentions – in retail and beyond – dropped six points, with expectations of spending falling in nearly every retail category.
It comes after millions took to high streets, retail parks and malls over the weekend to finalise their Christmas shopping.
Many businesses will be hoping to make the most of the Christmas and New Year surge to save their ‘golden quarter’ – the part of the year where retailers typically make most of their annual profits – after a disappointing autumn.
Shoppers in Canterbury, Kent, ahead of Christmas Day on Wednesday
Christmas shoppers in Canterbury, Kent, ahead of Christmas Day on Wednesday. Brits in wooly jumpers and scarves – and sometimes Santa hats – are on the lookout for the best deals
Shoppers hit the streets of Bournemouth to snap up last minute Christmas presents on Monday
Shoppers on New Street in Birmingham ahead of Christmas Day on Wednesday
A busy Oxford Street in London on December 21 ahead of Christmas day
MRI said the year-on-year 5.3 percent drop in footfall on the high street suggested the cost of living was still affecting many families
Christmas shopper under lights along Regent Street in London in December 2023
Shoppers queue outside the famous Griffins the butchers in the West Berkshire Town of Newbury to collect their Christmas orders ahead of Christmas Eve
There has been a last-minute dash for presents and all the trimmings as people get into the festive spirit
Shoppers queue patiently outside a Timperley butchers, picking up their turkey for the big day
Katie Wyle, the head of shopping centre management UK at Unibail-Rodamco-Westfield, owner of the centres said: ‘Super Weekend is always one of the busiest calendar moments for retail, and at Westfield London and Westfield Stratford City last year we welcomed 550,000 visitors looking to maximise the final shopping weekend before Christmas.’
A spokesman for the British Retail Consortium said they were hopeful the shopping would deliver a much-needed boost to the retail industry.
They added: ‘Retailers are hoping after a challenging year of trading Christmas will deliver the boost they need.
‘One-fifth of the year’s sales are made in the ‘golden quarter’ so it is a very important trading period.’
This comes amid worrying suggestions that November was a weaker month than might be expected.
Kris Hamer, Director of Insight at the British Retail Consortium, said: ‘After a positive start to the Golden Quarter, November sales stagnated, with higher energy bills and low consumer sentiment impacting spending. Clothing suffered from a fall in sales, with milder weather putting many off updating their winter wardrobe.
‘Consumers were also holding out for the main black Friday sales week to pick up beauty and electrical deals, which saw their first falls of the year.
‘The final two months of the year account for over one-fifth of all sales, making it a period of vital importance – particularly for non-food. ‘
