In a welcome boost after a challenging festive season, UK retailers experienced a last-minute surge in shoppers on Christmas Eve. Footfall across all retail destinations jumped 31.1% up to noon on 24 December compared to last year, according to data from MRI Software. The rise comes despite the ongoing cost of living crisis weighing on consumer spending.
Shopping Centres See Biggest Gains
Shopping centres were the star performers, recording a 42.2% year-on-year increase in visitors on Christmas Eve morning. High streets also saw a healthy 29.1% rise, while retail parks experienced a 23.7% uptick. The surge in last-minute shopping will provide some relief for retailers after sluggish trading in the run-up to the holidays.
Festive Events Drive Footfall
Retailers have been pulling out all the stops to attract customers, with many holding special festive events and attractions. This appears to have paid off, particularly in market towns which saw footfall jump 50% compared to Christmas Eve 2023. The boost suggests consumers were keen to soak up the holiday atmosphere despite tighter budgets this year.
While many have taken to the shops this morning, 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.
– Jenni Matthews, marketing and insights director at MRI Software
Mixed Picture Leading Up to Christmas
The Christmas Eve surge comes after a mixed performance in the days prior. Footfall on 23 December was 5.3% lower on high streets than the same day in 2023. While shopping centres and retail parks saw modest year-on-year increases of 1.4% and 4.9% respectively, the overall trend pointed to the ongoing impact of the cost of living crisis.
However, retailers did enjoy a much-needed boost on what was expected to be the peak Christmas shopping day. On 23 December, footfall jumped by 28.5% across all UK retail destinations compared to the previous week. Shopping centres led the way with a 45.5% week-on-week increase, followed by retail parks at 31.1%.
Outlook for New Year Remains Challenging
While the last-minute rush will bring some cheer, the outlook for retailers in the new year remains challenging. With living costs still squeezing household budgets, many consumers are expected to rein in spending after Christmas. Retailers will need to work hard to tempt shoppers and drive loyalty in an increasingly competitive market.
- Harnessing data will be key to understanding and predicting shifting consumer behavior
- Investment in online and omni-channel will be critical as more shopping moves digital
- Focus on value, quality and experience can help retailers stand out and retain market share
Christmas Retail Crucial for Economy
The performance of the retail sector over the festive season is hugely important for the wider UK economy. Retail sales during November and December can account for up to 30% of a retailer’s annual turnover. A poor Christmas can push vulnerable retailers into insolvency, leading to job losses and vacant storefronts in Britain’s towns and cities.
At the same time, bumper holiday sales provide a lift to economic activity and sentiment that can carry through into the new year. With the UK teetering on the brink of recession, any boost from a positive Christmas shopping season will be especially welcome for the government and households.
As the final trading figures come in, retailers will be tallying up the winners and losers from a roller-coaster “Golden Quarter”. While the last-minute rush has brought some much-needed sparkle, the industry is bracing for a bruising start to 2025 as consumers tighten the purse strings after the Christmas splurge.
