Last-minute Christmas shopping saw a downturn this year as high street activity on 23 December dropped from the same day in 2023, new figures show.
Retailers hopes for a spending frenzy were dampened as footfall on UK high streets was 5.3 per cent lower on than the same time last year. The Monday was expected to be 2024’s peak Christmas shopping day, but the drop is a bad indicator for the industry of consumer confidence.
The figures from MRI Software show that footfall did jump by 28.5 per cent across all retail destinations compared to the week before. Visits to shopping centres were up 45.5 per cent, while retail parks saw a 31.1 per cent increase. For high streets, the boost was 1.8 per cent.
However, MRI said the year-on-year drop in footfall on the high street suggested the cost of living is still affecting many families.
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.
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.”
Separate figures have also suggested that 2024’s festive period has hit retailers hard, as footfall over the full final week before Christmas drops by 11.4 per cent.
Meanwhile, rhe British Retail Consortium (BRC) has warned of a January spending squeeze as consumers grapple with ever-increasing costs.
BRC-Opinium figures suggest public confidence in the economy fell eight points to minus 27 in December, while spending intentions dropped six points, with expectations of spending falling in nearly every retail category.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7bn of new costs from the Budget set to hit the industry in 2025.
“With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate the impact this will have on growth, Government must ensure that its proposed business rates reform does not result in any shops paying higher rates than they already do.”
