Fresh hammer blow dealt to High Street: Shoppers set to spend less money in Boxing Day sales than last year_Nhy
Shoppers are set to spend less money in the Boxing Day sales than last year in a fresh blow for the High Street.
Although it is predicted that £4.6billion will be spent in today’s sales, this is a 2 per cent decrease compared to last year, according to analysis published by Barclays.
The slump comes as retailers are reeling from Labour’s £25billion raid on employer National Insurance and an inflation-busting rise to wages.
Household names including Currys and B&Q have warned the tax hike will result in lower pay, fewer staff and higher prices. Retailers will be hoping for a lucrative spending spree after figures last week painted a bleak picture of the festive period so far.
A survey from the Confederation of British Industry showed retail sales declined for the third month in a row in December and that firms see no sign of improvement in January.
The lobby group found that sales this month were ‘poor’ for the time of year.
It is a blow for the High Street during the key period after Christmas – which is a ‘make or break’ time for many firms. Shoppers are set to splurge an average of £236 each in the sales.
And in a win for retailers in the battle against online outlets including Amazon, more shoppers plan to splash their cash in-store than last year.
Shoppers are predicted to spend less money at this year’s Boxing Day sales than last year (file photo)
A survey from the Confederation of British Industry showed retail sales declined for the third month in a row in December (file photo)
Household names including Next and Marks & Spencer have said they will not open shops today so staff can spend more time with loved ones. But brands which are serving customers could be set for ringing tills.
A quarter of those surveyed by Barclays intended to shop in-person – an 11 percentage point increase on last year.
Respondents put this down to wanting to see and touch items before they buy them and enjoy socialising while shopping.
And the cost of living is still looming large in consumers’ minds as more shoppers are on the hunt for practical items including food and kitchen products this year.
More shoppers plan to spend their cash in-store this year, in order to see and feel items before they buy and enjoy time socialising (file photo)
Karen Johnson, head of retail at Barclays, said: ‘Despite the ongoing cost-of-living pressures, it is encouraging to hear that consumers will be actively participating in the post-Christmas sales.
‘This year, we’re likely to see a shift towards practicality and sustainability, with more shoppers looking to bag bargains on kitchen appliances and second-hand goods.’
Kris Hamer, director of insight at the British Retail Consortium, said: ‘The festive trading period is a vital time for retailers, with over a fifth of annual sales taking place in the final two months of the year. Retailers will hope that the momentum of Christmas will help boost Boxing Day and January sales.
‘This is much needed after a challenging year which has been marked by low consumer confidence and weak sales growth.’
