Shoppers surged on to UK high streets on Saturday amid signs they are spending more in stores and on the internet than last year in the run-up to Christmas as retailers hope for a last-minute rush.
Spending was up 2.3% year on year during the seven weeks to 20 December, led by a 6.1% rise online, according to the credit and debit card provider Visa. Shoppers focused on electronics and homeware, with sales rising almost 7% in department stores and electronics sales up 1.3%.
However, consumers are clearly choosing how they allot their budgets very carefully, with sales of clothing and accessories down 2% year on year, suggesting it has been a difficult end to the season for the fashion industry after a mild autumn that sparked a wave of discounting.
Alicia Ngomo Fernandez, the head of UK consulting at Visa, said: “This holiday season we observed a tentative rebound in consumer confidence, reflected in moderate growth in overall sales and stronger online shopping – as well as solid growth in spending at department stores.”
The average UK household had 10.5% more disposable income in November, marking six consecutive months of double-digit increases as pay rises continued to outstrip inflation, according to data from the Asda Income Tracker, put together by the analysis firm Cebr.
The average UK household was £23.74 a week better off last month compared with a year earlier and had £249 a week to spend after paying bills and essentials, providing some relief for families as they get ready for the big day.
The number of shoppers out and about on 21 December – when consumers were expected to spend £3bn – was up 0.8% on the same Saturday last year, according to the footfall monitoring firm Sensormatic Solutions.
Some commenters argued the increase was disappointing after visitor numbers on high streets and at shopping centres for the first three weeks of December were down 3.6% year on year, with fears that spending had been held back by the high costs of basics such as energy and food.
However, analysts at Visa said the late Black Friday promotions, which this year spilled into December, had pulled some Christmas shopping forward – contributing to a decrease in shopping activity from the middle of the month.
The poor December footfall figures also reflect the timing of Christmas, with two weekdays left for shopping after the weekend and many families only starting their holidays on Saturday.
Andy Sumpter, Sensormatic’s retail consultant, said shopper numbers were expected to build on Monday, which is forecast to be the third-busiest trading day of the year in physical stores.
Sumpter said: “One of the highest-stakes shopping days of Christmas, Super Saturday delivered a frenzy of festive footfall to retailers. However, while welcome, the jury’s still out as to whether the final flurries of Christmas trade will be enough to reverse this month’s footfall deficit.”
He said New Look, The Range and Debenhams were among the retailers launching early Boxing Day discounts before Christmas, while Next was offering pre-Christmas access to its VIP sale, which usually begins on 27 December, to its most loyal customers.
