Boxing Day Spending Set to Dip as Cost of Living Cools Shopper Habits

Consumer spending on Boxing Day is predicted to fall below the levels seen in the previous two years, according to the latest Barclays Consumer Spend report, as the ongoing cost of living crisis significantly impacts shoppers’ decisions. Overall spending is forecast to reach £3.6 billion, a decrease from £4.6 billion in 2024 and £4.7 billion in 2023.

Despite the anticipated decline in overall expenditure, there’s a glimmer of positivity: the average shopper intends to increase their individual budget by £17 compared to last year. However, this increase is offset by a reduction in the number of participants, with only 26% planning to shop, down from 28% in 2024. A substantial 69% of consumers report that cost pressures will influence their spending this year, a significant rise from 47% in 2024.

Fashion remains the dominant category for Boxing Day purchases, attracting 37% of shoppers, following a period of relatively subdued spending in this area during 2025. Food and drink are the second most popular choice (27%), followed closely by beauty products (20%), homewares (20%), and discounted Christmas items (19%).

Looking at the broader Christmas sales period, nearly half (44%) of consumers plan to shop at some point, with the January sales proving to be the most favoured time for bargain hunting, attracting 89% of this group. The influence of technology is also becoming increasingly apparent, with the rise of artificial intelligence (AI) playing a key role in how shoppers search for and secure deals.

AI is not only changing *how* people shop, but also *where*. The report highlights a “renewed enthusiasm for the experience of shopping in-store,” driven in part by the use of AI tools. Almost half (49%) of those planning to take advantage of the Boxing Day sales intend to visit physical stores, citing the desire to see and touch items (42%), enjoy human interaction (27%), and treat the sales as a festive activity (26%).

Retailers could further encourage in-store visits by offering exclusive in-store discounts (29%), improving accessibility (24%), or providing free items with purchases (21%). While in-store shopping remains popular, online convenience continues to be a major draw, with 40% preferring to shop digitally, now further enhanced by AI-powered tools.

AI is “transforming how people seek out deals online,” with 37% of shoppers already utilising AI and smart tools. These tools are used for a variety of purposes, including product research (43%), price comparison (34%), generating gift ideas (31%), and setting up personalised alerts (25%). The technology offers “reassurance and efficiency,” with 72% believing it saves time and 65% trusting it to find discounts.

However, the use of AI isn’t without its concerns, as 50% of shoppers worry that these tools might encourage overspending. Reflecting the broader economic climate, a quarter (25%) will only purchase essential items during the sales. Within the beauty and skincare sector, 45% will focus on replenishing their favourite products at reduced prices, while 33% will be seeking discounts on premium brands.

Karen Johnson, Head of Retail at Barclays, notes that “Boxing Day is still a pivotal moment for retailers, fuelled by Christmas nostalgia, but it has evolved to reflect modern consumer demands.” She predicts a “balanced blend of online convenience, experiential retail and increasingly mindful purchasing” this year.