UK consumers are opening their wallets more freely in the final run-up to Christmas, with retailers reporting a 2.3 per cent year-on-year increase in the seven weeks to December 20, according to Visa figures.
Online sales led the increase, up 6.1 percent, while purchases of electronics and household goods saw the biggest increase as department stores reported a 7 percent increase in trade.
However, not all retail categories joined in the festive lift. Sales of clothing and accessories fell 2 percent, underscoring consumers’ desire to allocate their budgets more strategically. Analysts suggest that a combination of careful spending and a mild autumn, which prompted widespread discounting, contributed to the fashion sector’s subdued performance.
Alicia Ngomo Fernandez, head of UK consulting at Visa, said the data indicated “moderate growth” in sales, accompanied by “stronger online shopping and solid growth in department store spending”. This cautious optimism comes as households benefit from an improvement in disposable income, which rose 10.5 percent 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’ was up 0.8 per cent on the same day last year, with consultancy Sensormatic Solutions estimating consumers would spend around £3 billion. Yet footfall in high streets and shopping centers remained 3.6 percent lower in the first three weeks of December than in 2023, likely reflecting the continued impact of higher costs for essentials such as energy and groceries.
Commentators suggest part of the shortage stems from an unusually late Black Friday period, which extended into December and pulled up some Christmas shopping. Meanwhile, the timing of Christmas itself (two full weekdays left after the weekend for last-minute shopping) can also boost visitor numbers, especially as many families don’t start their holidays until Saturday.
Andy Sumpter, retail consultant at Sensormatic, expects a further rise on Monday, which is tipped to be the third busiest trading day of the year. “While ‘Super Saturday’ brought a veritable rush of festive footfall, the big question is whether these latest boosts in Christmas trading will offset the earlier dip,” he said.
Despite the uneven performance, some retailers didn’t wait for Boxing Day to bring out the sale signs: New Look, The Range and Debenhams launched early discounts, and Next offered VIP customers early access to the post-Christmas sale. With consumer confidence warming but still dampened by cost-of-living pressures, many industry watchers are eagerly awaiting the final numbers to see if this year’s spending increase actually lives up to expectations.