UPDATE: Boxing Day sales have plunged, with high street and shopping centre visits sharply down, leading to an alarming £1 billion profits drop, as confirmed by new data from MRI Software. The retail landscape is shifting, as shoppers increasingly opt for online purchases rather than visiting physical stores.
As of 3 PM on December 26, 2025, foot traffic on UK high streets has decreased by 1.5% compared to last year, while shopping centres experienced a 0.6% decline. Barclays now projects that total spending during Boxing Day sales will only reach £3.6 billion, a significant drop from the £4.6 billion forecasted last year. This downward trend signals a worrying shift in consumer behavior, as the traditional significance of Boxing Day sales continues to wane.
Experts suggest that rising living costs are forcing consumers to tighten their belts. Reports indicate that 69% of shoppers cite cost pressures as a key factor influencing their spending decisions, a sharp rise from just 47% in 2024. Karen Johnson, Head of Retail at Barclays, emphasized that this cautious spending behavior is likely to persist throughout the sales period.
The slump in sales has prompted harsh critiques of the Labour government. Rachel Reeves, the shadow chancellor, has faced backlash for her proposed tax hikes, which critics blame for the current economic downturn and the £1 billion profit loss affecting high street retailers. Political leaders from the Conservative and Reform UK parties have condemned the government’s handling of the economy, arguing that the lack of consumer confidence reflects a broader crisis.
Andrew Griffith, Shadow Business Secretary, stated,
“Under Labour, Christmas has been reduced to a time for stocking up on discounted essentials rather than celebrating with family and friends.”
Meanwhile, Richard Tice, Reform UK’s Deputy Leader, pointed out that promises to control living costs have failed, with household bills soaring and economic growth stagnating.
The impact of these changes is palpable, particularly for struggling retailers who rely on the Boxing Day sales to boost their revenues. As consumer habits shift and economic pressures mount, the high street faces an uncertain future. Shoppers are clearly feeling the pinch, with many choosing to remain at home rather than support local businesses this year.
Looking ahead, analysts will be closely monitoring shopping trends in the coming weeks to see if this downturn continues. With consumer confidence teetering, the future of physical retail remains in jeopardy. Retailers are urged to adapt swiftly to the evolving economic landscape to survive the ongoing challenges.
For now, the Boxing Day sales reflect broader economic struggles, and shoppers’ hesitance to spend heralds a challenging season ahead for high street businesses. Stay tuned for more updates as this story develops.
