Boxing Day sales slump confirmed as high street and shopping centre visits are down - with Rachel Reeves' tax hikes blamed for £1billion profits plunge
Boxing Day sales have slumped as shoppers stay away from high streets and opt for online stores.
By SABRINA PENTY, FOREIGN NEWS REPORTER
Published: 19:02 GMT, 26 December 2025 | Updated: 22:02 GMT, 26 December 2025
Boxing Day sales have slumped as shoppers stay away from high streets and opt for online stores.
By 3pm on Friday, visits to UK high streets were 1.5 per cent lower year-on-year, while shopping centres saw a 0.6 per cent slump, according to data by MRI Software.
Barclays forecasts customers to spend around £3.6billion in the Boxing Day sales, a decrease from the £4.6billion they expected in last year's sales.
The amount spent online is also expected to fall.
While people are still heading to the shops, the figures suggest that Boxing Day sales have lost the significance they once held.
Karen Johnson, Head of Retail at Barclays, said shoppers have been more cost-conscious, and this behaviour is likely to extend into the Boxing Day sales.
The slump in Boxing Day sales comes after the Labour government was accused of sounding a £1billion death knell to the High Street.
Struggling retailers will lose out on the much-needed revenue as consumer confidence collapses amid Rachel Reeves' tax bombshells.
Shoppers walk along Oxford Street during Boxing Day sales in London on December 26, 2025
The Boxing Day sales slump comes after Rachel Reeves' tax hikes were blamed for a £1billion profits plunge for the High Street
The drop in high street footfall is due to stretched household budgets, with 69 per cent of people saying cost pressures will impact their spending this year, up from 47 per cent in 2024.
The Conservatives and Reform UK blamed Labour for presiding over a 'flatlining economy and collapsing consumer confidence'.
Shadow business secretary Andrew Griffith said: 'Under Labour, Christmas has been reduced to a time for stocking up on discounted essentials rather than celebrating with family and friends.
'With the Government presiding over a flatlining economy and collapsing consumer confidence, shoppers are tightening their belts and retailers are paying the price'.
Reform deputy leader Richard Tice said: 'This government came in promising to get the cost of living under control.
'Almost two years later, household bills have soared, economic taxes have skyrocketed and economic growth has flatlined.
'It's no surprise that shoppers are feeling the pinch and choosing to stay at home instead of supporting high street businesses this Boxing Day.'