Boxing Day sales expected to fall by more than a quarter

Purchases in physical stores are expected to fall by more than half

A pedestrian wearing a face mask or covering due to the COVID-19 pandemic, carries shopping bags and Christmas wrapping paper as they walk along Oxford Street in central London on 22 December, 2020. (AFP via Getty Images)

Around 8.2 million shoppers are expected to hit the high street on Boxing Day, despite extensive new Covid-19 restrictions forcing non-essential retailers to close.

However, total Boxing Day spending is expected to fall by more than a quarter compared with a year ago, according to research by the Centre for Retail Research for VoucherCodes.co.uk.

Boxing Day sales are expected to be £3.2 billion — down 27 per cent compared with last year — researchers said.

Sales in physical stores are expected to reach £1.4 billion, research found, down 56 per cent on the same day last year.

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Online sales will jump around 56 per cent to £1.8 billion as shoppers stay home, the report added.

Before the government announcement on Wednesday, experts had predicted sales through the week of December 26 and 31 would be £12.7 billion.

But with several parts of England plunged into tier 4, which bans non-essential retailers from opening, just £10.1 billion will be spent during the post-Christmas week, the report said.

London and the South East spending will be most sharply affected by the new restrictions, due to being in Tier 4 and having such a high concentration of shopping centres and department stores.

Bricks and mortar retailers will be the worst hit, having been expected to make £779 million on Boxing Day in these areas before entering Tier 4.

This is now forecast to drop 76 per cent to just £187 million, the report added.

Anita Naik, lifestyle editor at VoucherCodes.co.uk, said: "The post-Christmas sales are always one of the busiest times for retailers, and while this is still the case, it's not surprising to see a decline in sales for the third year in a row, especially due to the new restrictions in place for most of the country.

"In Tiers 1, 2 and 3, retailers can continue to trade so the picture is mixed. However, the impact on spending in Scotland and Wales — which are both bringing in new lockdown measures from Boxing Day — as well as Tier 4 areas in England is severe."

PA