Boxing Day splurge forecast at £4.6bn despite cost-of-living concerns

Britons are expected to spend a total of £4.6bn in Christmas sales this year, with the average shopper expected to spend £236, according to new research by Barclays.

Although this figure is marginally lower than in 2023, when £4.7bn was spent, it still indicates a strong appetite for deals despite ongoing concerns about the cost of living.

Expected spending per person is down by £18 compared to last year, yet shoppers are set to pay £50 more than they did in 2019, before the pandemic. The researchers point out that while some of the increase is attributable to inflation, it also reflects a continuing desire among consumers to seek value for money during the post-Christmas period.

Spending patterns appear to favor men, who are set to spend £53 more than women. Karen Johnson, head of retail at Barclays, said: “It is encouraging to hear that consumers will actively participate in post-Christmas sales,” despite increasing financial pressures.

“We are likely to see a shift towards practicality and sustainability this year,” she said. “Many shoppers will be looking for deals on kitchen appliances and used goods.”

In fact, air fryers and similar kitchen appliances have soared in popularity, with year-over-year sales up 7 percent. Barclays attributes this to a focus on “functional finds” and efforts to provide big-ticket items that would normally be out of reach for many shoppers.

The research also indicates a cautious mood: Nearly a quarter of consumers will only buy what they consider essential in sales. However, some shoppers are still keen to make the most of the in-store shopping experience. More than a quarter of the public plan to visit stores in person – up from 15 per cent in 2023 – driven by a desire for social interaction, the ability to touch and feel products before purchasing, and the traditional thrill of high street shopping.

“Boxing Day looks very special this year,” said shopper Gabrielle Kirkham, who will be returning to the high street for the first time since the pandemic. “I plan to buy clothing and skincare products at discounted prices. It’s much easier to try on clothes in person, which can be more difficult online.”

Although some brick-and-mortar retailers are choosing to remain closed on Boxing Day, stores that do open are likely to see a boost. A quarter of people who plan to shop at sales say they will spend most of their money in physical stores. Many cited the ability to see items live and enjoy socializing while shopping as main reasons.

High streets and shopping centers remain top destinations, with around a third of British consumers planning to visit. Supporting local businesses is also a factor, with 17 per cent aiming to support their local high street and 15 per cent intending to shop with independent retailers.

However, online channels are expected to account for the lion’s share of post-Christmas spending. Barclays expects 65 per cent of Boxing Day purchases will be made online, a slight increase on last year’s 64 per cent. However, retailers hoping to attract more people to the high street may consider in-store offers only: around a third of shoppers say they would be swayed by discount codes that can only be redeemed in person, while 27 per cent would be tempted by a gift Free with in-store purchases.