This Christmas appears to have been “disastrous” for retailers as households battle with ongoing cost-of-living pressures, figures suggest.
Retail footfall was 11.4% down on last year over the final full week before Christmas, according to Rendle Intelligence and Insights.
Even on Super Saturday – the final Saturday before Christmas Day and typically the peak shopping day of the year – footfall was just 4.1% higher than the previous Saturday, and only 0.9% higher than the same Saturday a year earlier.
Black Friday footfall was 5.5% higher than last year, suggesting consumers took the opportunity to buy discounted gifts then, the figures indicate.
Diane Wehrle, chief executive of Rendle Intelligence and Insights, said: “The disappointing results, which come on the same day that we have learnt that the economy failed to grow between July and September, clearly reflect the ongoing cost pressures faced by households following a prolonged period of very high inflation.
“It appears this Christmas has been disastrous for retail, and a bad omen for 2025.”
Sensormatic Solutions said its figures showed a 0.8% year-on-year rise in Super Saturday footfall, boosted by early discounting.
Meanwhile, the British Retail Consortium (BRC) warned of a January spending squeeze on the horizon.
BRC-Opinium figures suggest public confidence in the state of the economy nosedived in December, falling eight points to minus 27.
The public’s spending intentions – both in retail and beyond – dropped six points, with expectations of spending in nearly every retail category falling.
BRC chief executive Helen Dickinson warned retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales.
Ms Dickinson said: “The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7 billion of new costs from the Budget set to hit the industry in 2025.
“With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment.”