British consumers are spending more in the lead-up to Christmas, with retail spending rising 2.3% year-on-year for the seven weeks leading up to December 20, according to figures from Visa. Online sales led the charge, increasing by 6.1%, while electronics and homeware purchases saw the most significant boost, with department stores reporting a 7% uptick in trade.
Despite the overall increase, some retail categories, such as clothing and accessories, struggled. Sales in these sectors fell by 2%, indicating that consumers are being more selective with their purchases. Analysts suggest that careful spending, along with a mild autumn that led to widespread discounting, contributed to the subdued performance in fashion.
Alicia Ngomo Fernandez, head of UK consulting at Visa, noted that the data points to “moderate growth” in sales, with “stronger online shopping and solid growth in spending at department stores.” This cautious optimism is fueled by improvements in disposable income, which rose by 10.5% in November, marking six consecutive months of double-digit gains, according to Asda’s Income Tracker, compiled by Cebr.
“Super Saturday,” the Saturday before Christmas, saw footfall increase by 0.8% compared to the same day last year, with estimates suggesting consumers spent roughly £3 billion. However, visitor levels on high streets and in shopping centers during the first three weeks of December remained 3.6% below 2023, likely due to the continued strain of high costs for essentials like energy and groceries.
Experts believe part of this shortfall can be attributed to the timing of Black Friday, which occurred later than usual and extended into December, pulling forward some Christmas purchases. With Christmas falling on a Monday, many families only began their holidays on Saturday, which could further boost footfall as the festive period continues.
Retail consultant Andy Sumpter of Sensormatic expects a final surge in spending on Monday, which is expected to be the third-busiest trading day of the year. “While ‘Super Saturday’ delivered a frenzy of festive footfall, the big question is whether these final flurries of Christmas trade will compensate for the earlier dip,” he said.
In response to the fluctuating sales trends, some retailers have already begun offering discounts ahead of Boxing Day. New Look, The Range, and Debenhams have launched early sales, while Next has provided VIP customers with early access to its post-Christmas offers.
As consumer sentiment improves, albeit tempered by ongoing cost-of-living pressures, the industry is closely monitoring the final figures to determine whether this year’s spending boost will meet expectations.
