According to a report from Signifyd, retailers may not be able to rely on Boxing Day sales to salvage a lackluster festive shopping season. The report predicts that sales on Boxing Day will be 3% lower than last year’s numbers, which aligns with the 4% drop seen on Black Friday.
This report’s findings mirror the trend observed throughout December, with Signifyd describing the season as starting off strong but quickly fading. The decline can be attributed to attractive discounts in November that prompted consumers to spend earlier. While online sales in the UK were up 6% in November, December has seen a 5% decrease, indicating that early demand displaced some spending that would typically occur during the festive season.
If this prediction proves accurate and the lack of enthusiasm extends to physical stores, it would mean that Boxing Day sales in brick-and-mortar shops will follow the trend of a weak December 26th last year. In 2021, Boxing Day fell on a Sunday, resulting in limited trading hours and store closures to give employees an extra day off. This may have deterred some consumers from going out, as shopper counts on Boxing Day were 61.2% lower than pre-pandemic levels, according to data from Sensormatic Solutions.
The combination of decreased online sales in December and the potential impact on physical stores poses a challenge for retailers who rely on Boxing Day to boost their overall shopping season performance. With lower sales expectations compared to last year, retailers must explore alternative strategies to drive consumer spending and salvage what remains of the festive shopping season.
Useful links:
1. Retail Gazette: Boxing Day sales to slump amid low consumer enthusiasm
2. BBC: Boxing Day shopping hit by store closures and fear of Covid
