British shoppers opened their wallets freely in the run-up to Christmas, with retailers reporting a 2.3 percent year-on-year rise in spending in the seven weeks to 20 December, according to figures from Visa.
Online sales led the rise, up 6.1 percent, while electronics and homeware purchases enjoyed a significant boost as department stores reported a 7 percent increase in trade.
However, not all sales categories share in the festive lift. Sales of clothing and accessories fell by 2 percent, underscoring consumers’ desire to allocate their budgets wisely. Analysts suggest a combination of cautious spending and a mild autumn, which has resulted in widespread discounting, has contributed to the low performance of fashion.
Alicia Ngomo Fernandez, head of UK consulting at Visa, said the data pointed to “moderate growth” in sales, coupled with “strong online shopping and strong growth in spending in supermarkets”. The optimistic outlook comes as households benefit from improved incomes, which rose 10.5 per cent in November, marking six straight months of double-digit gains, according to Asda’s Income Tracker compiled by Cebr.
Following what retailers call “Super Saturday” it was up 0.8 per cent on the same day last year, when consultancy Sensormatic Solutions estimated shoppers would spend around £3 billion. However, high street and shopping center visitor levels in the first three weeks of December remained 3.6 percent below 2023, likely reflecting the continued impact of higher costs of essential items such as energy and groceries.
Analysts suggest that part of the shortfall stems from the unusual Black Friday period, which rolled into December and pushed up some Christmas shopping. Meanwhile, the Christmas season itself—arriving with two full weekdays left for last-minute shopping after the weekend—can also cause a slowdown, especially since many families started their holidays on Saturday.
Andy Sumpter, a sales consultant at Sensormatic, expects to move forward on Monday, which is expected to be the third busiest day of the year. “While ‘Super Saturday’ has brought a rush of traders’ feet, the big question is whether these last Christmas trading events will compensate for the previous dip,” he said.
Despite the uneven performance, some retailers didn’t wait for Boxing Day to reveal their sales: New Look, The Range, and Debenhams launched early discounts, and Next gave VIP customers early access to their post-Christmas sales. With consumer sentiment warming but still tempered by cost-of-living pressures, many industry watchers are waiting for the final figures to see if this year’s inflation is in line with expectations.