UK Christmas shopping rebounds with higher spending on high street and online

British consumers are opening their wallets more freely in the run-up to Christmas, with retailers reporting a 2.3 per cent year-on-year increase in spending in the seven weeks to December 20, according to figures from Visa.

Online sales led the increase of 6.1 per cent, while electronics and homeware purchases received the biggest boost as supermarkets recorded a 7 per cent increase in trade.

However, not all retail categories participated in the ceremonial lift. Sales of clothing and accessories fell by 2 percent, underscoring consumers’ desire to allocate their budgets more strategically. Analysts point out that a combination of cautious spending and a moderate autumn, which led to widespread cuts, contributed to fashion’s poor performance.

Alicia Ngomo Fernandez, head of UK consulting at Visa, said the data indicated “moderate growth” in sales, accompanied by “stronger online shopping and strong growth in spending in department stores.” The cautious optimism comes as households benefit from improved disposable income, which rose 10.5 per cent in November, marking six consecutive months of double-digit gains, according to Asda’s income tracker compiled by Cebr.

Footfall on what retailers dubbed “Super Saturday” rose 0.8 per cent compared to the same day last year, with consultancy Sensormatic Solutions estimating consumers will spend nearly £3 billion. However, visitor levels in high streets and shopping centers during the first three weeks of December remained 3.6 per cent lower than in 2023, likely reflecting the continuing impact of rising costs for essentials such as energy and grocery.

Commentators suggest that part of the deficit stems from the unusually late Black Friday period, which lasted into December and took away some Christmas purchases. Meanwhile, the timing of Christmas itself – which arrives with two full days of the week left for last-minute shopping after the weekend – may also lead to increased footfall, especially as many families only started their holiday on Saturday.

Andy Sumpter, retail consultant at Sensormatic, expects further push on Monday, which is expected to be the third busiest trading day of the year. “While Super Saturday brought a wave of festive footfall to retailers, the big question is whether these latest waves of Christmas trade will offset the previous decline,” he said.

Despite the mixed performance, some retailers didn’t wait for Boxing Day to show signs of sale: New Look, The Range and Debenhams launched early sales, and Next offered VIP customers early access to its post-Christmas sale. With consumer sentiment rising but cost of living pressures continuing, many industry watchers are eagerly awaiting the final numbers to see if this year’s spending increase actually lives up to expectations.


Jimmy Young

Jamie is an experienced business journalist and Senior Reporter at Business Matters, with over a decade of experience reporting on UK SME business. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When Jamie is not reporting on the latest business developments, he is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.

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