Expect consumer spending on Boxing Day to possibly fall short of the sales event’s previous two years as concerns over the cost of living weigh heavily on decision-making, says to the Barclays Consumer Spend report.
Image: Sandra Halliday
But fashion does remain the top shoppers’ choice with beauty not far behind.
Some 69% say cost pressures will impact their spending this year, up from 47% in 2024.
UK consumers are expecting to spend £3.6 billion this time, lower than the £4.6 billion predicted in 2024 and £4.7 billion in 2023. The good news is that the average shopper intends to increase their budget by £17 compared to 2024. That said, there’ll be fewer consumers taking part at 26% down from 28% a year ago.
As mentioned, clothes, footwear and accessories all remain top this year, chosen by 37% after the category saw subdued spending in 2025.
Third is beauty products (20%), behind food and drink (27%), but ahead of homewares (20%) and discounted Christmas items (19%) ranked next.
Meanwhile, nearly half (44% ) say they plan to shop at some point during the Christmas sales period, and for this group, the January sales are the most popular time to do so, chosen by 89%.
The growth of artificial intelligence (AI) is now having an increasing influence with shoppers embracing AI and other smart tools in their hunt for deals.
And AI’s also having an influence on where consumers shop, with the report noting its use “demonstrates a renewed enthusiasm for the experience of shopping in-store”.
Demand for in-store shopping remains strong, continuing to be a Boxing Day tradition for many sales fans, as 49% of those who will browse the Boxing Day sales plan to visit shops in-person.
Those hitting the high street say they prefer to see and touch items before they buy (42%), that they like the human interaction (27%) and that they view the sales as a nice Christmas activity (26%.
People also say they would be even more inclined to visit the shops if they were offered in-store-only discounts (29%), easier access (24%), or free items with purchases (21%).
As for shopping digitally, the survey says that convenience is key with online shopping now being supported by the use of AI tools.
Online shopping remains the preference for 40%, and AI is “transforming how people seek out deals online”. Some 37% say they use AI and/or smart tools when shopping, rising to 53% for those aged 18-34.
These shoppers are turning to AI and smart tools to research products (43%), compare prices and deals (34%), generate gift ideas (31%) and set up personalised alerts (25%).
For many, the technology “provides reassurance and efficiency” with 72% saying it saves time by narrowing down the best deals, while two thirds (65%) trust AI to help find discounts. However, 50% do worry that AI tools may encourage overspending.
However, in light of growing cost-of-living concerns, a quarter (25% will only buy what they consider to be essentials in the sales. For those shopping for beauty and skincare specifically, 45% will use the sales to pick up their go-to products at lower prices, while 33% will be searching for premium beauty brands at a discount.
Karen Johnson, head of Retail at Barclays, said: “Boxing Day is still a pivotal moment for retailers, fuelled by Christmas nostalgia, but it has evolved to reflect modern consumer demands. This year, we’re likely to see a balanced blend of online convenience, experiential retail and increasingly mindful purchasing.”
