UK Christmas shopping rebounds with higher spending on high street and online

British 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 rise in spending for the seven weeks to 20 December, according to figures from Visa.

Online sales led the increase, up 6.1 per cent, while electronics and homeware purchases enjoyed the most significant boost as department stores reported a 7 per cent uptick in trade.

However, not all retail categories shared in the festive lift. Clothing and accessories sales dropped by 2 per cent, underlining consumers’ desire to allocate their budgets more strategically. Analysts suggest a combination of careful spending and a mild autumn, which triggered widespread discounting, contributed to fashion’s subdued performance.

Alicia Ngomo Fernandez, head of UK consulting at Visa, said the data pointed to “moderate growth” in sales, accompanied by “stronger online shopping and solid growth in spending at department stores”. This cautious optimism comes as households benefit from an improvement in disposable income, which rose by 10.5 per cent in November, marking six straight 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 against the same day last year, with the consultancy Sensormatic Solutions estimating consumers would spend roughly £3 billion. Yet, visitor levels in high streets and shopping centres for the first three weeks of December remained 3.6 per cent below 2023, likely reflecting the continued impact of higher costs for essentials such as energy and groceries.

Commentators suggest part of the shortfall stems from an unusually late Black Friday period, which bled into December and pulled forward some Christmas purchases. Meanwhile, the timing of Christmas itself—arriving with two full weekdays left for last-minute shopping after the weekend—may also prop up footfall, especially as many families only started their holidays on Saturday.

Andy Sumpter, retail consultant at Sensormatic, expects a further push on Monday, tipped to be the third-busiest trading day of the year. “While ‘Super Saturday’ delivered a frenzy of festive footfall for retailers, the big question is whether these final flurries of Christmas trade will compensate for the earlier dip,” he said.

Despite the uneven performance, some retailers have not waited 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 its post-Christmas sale. With consumer sentiment warming but still tempered by cost-of-living pressures, many industry watchers are keenly awaiting the final figures to see if this year’s spending surge truly lives up to expectations.

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UK Christmas shopping rebounds with higher spending on high street and online