UK shoppers hit the high streets on Saturday, boosting sales in-store and online as Christmas approaches. According to Visa, spending rose by 2.3% in the seven weeks leading up to 20 December, with online purchases increasing by 6.1%. Electronics and homeware were the standout categories, with department store sales climbing nearly 7% and electronics up 1.3%.
Despite the overall growth, consumers remain selective with their spending. Clothing and accessories sales dropped 2% yearly, reflecting challenges for the fashion sector. A mild autumn and widespread discounting have impacted end-of-season sales.
Households are benefiting from higher disposable incomes. In November, average disposable income rose by 10.5%, continuing six months of double-digit growth. The Asda Income Tracker reported that households were £23.74 better off each week than the previous year, with £249 left to spend after covering essentials.
Footfall on 21 December, a peak shopping day, increased by 0.8% year on year, with shoppers expected to spend £3bn. However, the first three weeks of December saw a 3.6% drop in visits to the high street and shopping centres. High living costs, particularly energy and food, may have curbed spending.
Visa analysts noted that extended Black Friday promotions, which carried into December, likely pulled forward some Christmas sales. The timing of Christmas, with two weekdays remaining for shopping after the weekend, also contributed to quieter mid-December trading.
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