Worrying reason high street giants shut up on Boxing Day ‘revealed’ and it’s bad news for January sales’ shoppers
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BOXING Day sales fell flatter than a Christmas pudding this year, as shoppers stayed home in droves and major retailers closed their stores. More than 7,500 shops – including big names like Marks & Spencer, Next, and John Lewis – remained closed on December 26.
While these retailers cited giving staff a well-deserved break as the primary reason, industry experts point to a combination of factors contributing to the closures. Rising staff costs, particularly holiday pay premiums, coupled with increased energy bills and the convenience of online shopping, have made opening physical stores on Boxing Day less profitable for some businesses.
Insolvency expert Julie Palmer told MailOnline that staffing costs were "breaking the back" of some shops. Palmer, a partner at restructuring firm Begbies Traynor, also warned that the outlook is "not looking good" after lacklustre Christmas trading could leave many firms facing potential collapse at the start of the New Year.
She said: "The first three months of 2025 could be one of the most perilous quarters for retailers in recent years.". Begbies Traynor's latest data shows that the number of UK retailers in "critical financial distress" hit 2,124 in the last three months of the year – a 25% increase from the preceding quarter.
Further data from Rendle Intelligence and Insights revealed that shopper numbers on the High Street in the final week before Christmas were 11% lower than last year. Additionally, shopping activity on the morning of Boxing Day was down nearly 9% from last year, reflecting a continued decline in footfall.
