Retailers Brace for Another Hit Amid Tier Restrictions
- Boxing Day sales expected to decline for the third year in a row
- Spending predicted to reach £3.2bn, down 26% from last year
- Offline sales estimated at £1.5bn with only 8.6 million shoppers on high street
- Online spending expected to grow by 56% to £1.8bn
- Government’s tiering system impacting festive period figures
- London and South East sales forecasted at £2.8bn, down from £4.4bn
- Bricks and mortar retailers to be worst hit with a 76% drop in Boxing Day sales
- Online shopping offers an alternative for bargain hunters
Retailers are preparing for a third consecutive year of declining Boxing Day sales, with spending expected to reach £3.2bn, down 26% from the previous year. Offline sales are estimated at £1.5bn and only 8.6 million shoppers are predicted to hit the high street. However, online spending is projected to grow by 56%. The government’s tiering system has had a significant impact on festive period figures. Prior to Tier 4 restrictions, sales were expected to reach £12.7bn between December 26 and January 1. Now, the total is predicted at £10.6bn. London and the South East will be most affected due to their high concentration of shopping centers and department stores. Bricks and mortar retailers face a 76% drop in Boxing Day sales, down from £779m to £187m. Anita Naik, lifestyle editor at VoucherCodes.co.uk, said, ‘The post-Christmas sales remain busy, but restrictions impact spending across the UK. In tiers 1, 2, and 3, retailers can still trade, while Scotland, Wales, and England’s tier 4 areas face severe consequences. Online shopping offers an alternative for bargain hunters with DealFinder by VoucherCodes finding the best discounts.’
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (VoucherCodes.co.uk) and presents the data in an objective manner. It discusses the impact of government restrictions on retail sales during Boxing Day and highlights the shift towards online shopping. The article also offers advice for consumers to save money while shopping online.
Noise Level: 3
Noise Justification: The article provides relevant information about the expected decline in Boxing Day sales due to the impact of COVID-19 restrictions on retail businesses. It also offers a solution for consumers to make the most of the sales by using DealFinder. However, it could benefit from more analysis or context on the long-term trends and consequences of these changes in shopping behavior.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and online shopping platforms
Financial Rating Justification: The article discusses the expected decline in Boxing Day sales, impacting retailers’ revenues and shifting consumer behavior towards online shopping. This has financial implications for both brick-and-mortar stores and e-commerce companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the impact of government restrictions on retail sales due to the pandemic, but it is not an extreme event in terms of natural disasters, financial crisis, political crisis, etc. The impact is considered minor as it mainly affects spending and business operations.
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