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Boxing Day sales expected to fall by more than a quarter

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

Alan Jones
Thursday 24 December 2020 16:47 GMT
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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.
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)

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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.

Read more:  How best to support independent businesses at Christmas?

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

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