This uptick was driven by a boost in shopping centre traffic, which surged 13.2%, retail parks with a 5.7% increase, and high streets which saw a 4.8% rise in the five weeks to 28 December, MRI Software said.

The strong performance comes as shoppers flocked to stores for last-minute Christmas shopping, taking advantage of festive events and attractions.

Retail parks and high streets, in particular, benefitted from increased leisure and hospitality offerings, drawing in consumers seeking a more experiential shopping experience during the holiday season.

However, despite the positive numbers, retail experts are bracing for a more challenging start to 2025.

MRI Software marketing & insights director Jenni Matthews warned that “the surge in festive footfall may well be the last big splurge for many consumers ahead of what could be a spending freeze heading into early 2025”.

Footfall data also showed a notable shift in consumer behavior, with a 1.6% rise in visits during the evening and night-time period across all retail destinations.

This trend points to the growing role of leisure and entertainment in driving retail traffic, as more shopping centres and retail parks diversify to meet evolving consumer demands.

Matthews added: “Retail parks and shopping centres have invested in more leisure and hospitality amenities to provide consumers with that experiential element, and one which caters for the entire family.

“High streets have continued to invest in festive markets and events to attract visitors during a period when the weather can be temperamental and travel disruptions are frequent which can sometimes deter people from towns and cities.”

While the days surrounding Christmas Eve saw footfall jump, the post-Christmas period showed a decline, particularly on Boxing Day, when footfall dropped by 4.9% compared to last year.

However, a rebound occurred in the final days of December, with footfall rising by 8.8% between December 27 and 28, fuelled by a 13.2% increase in high street activity.

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Data from MRI Software shows footfall across the UK surged 28.5% yesterday, led by a 45.5% rise in shopping centre footfall, alongside a 31.1% jump in retail parks.

Footfall across UK high streets also enjoyed “strong” week-on-week growth, which was up 18.8%.

MRI marketing and insights director Jenni Matthews said the spike reflects the “attraction of the vast leisure and retail options available to consumers” as shoppers hunt for last minute gifts and groceries as well as activities to keep the family entertained.

However, the firm noted that footfall remained 5.3% lower in high streets compared to the same date last year “suggesting the cost of living pressures continue for many families”.

Matthews added that “while many are taking to the shops ahead of Christmas Day, this may well be the last splurge before a big spending freeze sets in in the new year for consumers, meaning that retailers should be taking heed of these trends to plan accordingly for a challenging start to 2025”.

It comes as shoppers are expected to have spent £1.46bn both online and in-store on December 23, a 6.6% rise compared to the same day last year, according to VoucherCodes.co.uk’s Shopping for Christmas Report.

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According to VoucherCodes.co.uk’s Shopping for Christmas Report, retail sales — both online and in-store — are forecast to hit £1.46bn, a 6.6% rise compared to the same day last year.

Around 16 million shoppers are anticipated to hit the shops, with 12.6 million opting for physical stores and shopping centres.

VoucherCodes Senior Commercial Director Michael Brandy said: “With just hours to go until the big day, consumers are short on time and money, so offering convenience and genuine value will be the key to securing those final festive sales.”

Tuesday (Christmas Eve) is expected to be another major shopping day, with £1.31bn forecast to be spent — 17% higher than in 2023.

11.6 million people are expected to hit the high street in a last-minute dash for gifts and festive food, accounting for £1.08bn in sales.

Another £220m will be spent online, although with delivery cut-offs looming, most consumers will prioritise in-person purchases.

Brandy added: “This Christmas, consumers are leaving their shopping to the very last minute. This is good news for retailers who can expect sales to be up 17% compared to last year.”

VoucherCodes predicts that the momentum is set to continue into the Boxing Day sales, with £3.73bn predicted to be spent—the first post-Christmas sales rise in three years.

As cost-conscious shoppers hunt for bargains, retailers are expected to see increased footfall and online traffic.

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ONS senior statistician Hannah Finselbach said: “Retail sales increased slightly in November following last month’s fall.

“For the first time in three months there was a boost for food store sales, particularly supermarkets. It was also a good month for household goods retailers, most notably furniture shops.

“Clothing store sales dipped sharply once again, as retailers reported tough trading conditions.

“With November’s retail sales survey covering the four weeks to the 23 November, Black Friday itself will fall within December’s figures. However, our figures account for this shift in timing to give us the best picture of what is happening in the shops.”

The government department noted Black Friday fell on 29 November this year, putting it outside of its November reporting period. It ensured its seasonally adjusted estimates accounted for the shift in timing.

PwC leader of industry for consumer markets Lisa Hooker added: “There was a small headline rise in November’s retail sales, up 0.2% in value terms compared with this time last year, and seemingly reversing the weaker trend from the previous couple of months.

“However, given the exclusion of Black Friday from these results, they should not be taken as an indicator of wider retail performance in the run-up to Christmas.”

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UK inflation has risen to its highest level since March, fuelled by a rise increase in petrol and clothes prices last month, according to the latest figures.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation rose to 2.6% in November, from 2.3% the previous month – the second rise in two months.

The rate of CPI inflation for food and non-alcoholic drinks, alcohol and tobacco, clothing and footwear all edged higher in November.

ONS chief economist Grant Fitzner said: “Inflation rose again this month as prices of motor fuel and clothing increased this year but fell a year ago.”

Chancellor Rachel Reeves commented on the figures saying they are a reminder that “for too long the economy has not worked for working people.”

“I know families are still struggling with the cost of living and today’s figures are a reminder that for too long the economy has not worked for working people,” she said.

British Retail Consortium director of insight Kris Hamer added: ““Retailers are doing their upmost to deliver an affordable Christmas for their customers in the face of global price pressures. For an industry that operates on low margins, £7 billion of increased costs from higher employer NI, National Living Wage, and new packaging levies, cannot simply be absorbed, despite retailers’ best efforts, and will inevitably lead to price rises, job losses, and more empty stores on our high streets.

“Retailers are watching the Government’s proposed changed to business rates closely, and it is essential that it leaves no store paying more in rates than before. By protecting shops, the government can support retailers as the invest in keeping shops open, and keeping prices down.”

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GfK’s consumer confidence index grew by one point to -17 in December as forecasts for personal finances moved into positive figures at one to three points higher than this time last year.

Personal financial situation increased by two points over the past year to -7. The forecast for personal finances over the next 12 months is up two points to +1.

Looking at the general economic situation over the past year, the measure is unchanged at -39. Consumer sentiment is expected to stay unchanged at -26.

The major purchase index, an indicator of confidence in buying big ticket items, remains the same at -16, as the savings index dropped three points to +21.

Consumer insights director at GfK Neil Bellamy said: “Overall, 2024 has been another year of ups and downs in consumer confidence but much less so compared with recent years. In 2024, there was an eight-point difference between the highest and lowest score. In 2023, it was a difference of 23 points, and in 2022 it was 30 points.

“Of all the major events in 2024, the UK General Election was the most impactful, with initial post-election optimism giving way to a large seven-point fall in September as consumers were spooked by government messages about the state of the economy and difficult choices to be made.

“Looking at the consumer’s willingness to spend, Black Friday 2024 delivered a vital boost to retailers. Figures from GfK’s point-of-sale data reveal a strong Black Friday sales performance with sales of technology and durables, homeware, and seasonal products up by 1.8% in value, and 7.7% in volume overall versus Black Friday 2023. Turnover in Black Friday week hit £992m, a figure that’s 110% better than the average week in 2024.”

“We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood. In a nutshell, it’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence.”

Last week, Frasers Group CFO Chris Wootton noted that consumer sentiment has “definitely weakened pre- and post-Budget”.

“It’s obvious to anyone on the high street that the Budget has really spooked people, and frankly, the 24/7 bad news stories around it have sort of compounded that,” he said.

His comments come as the Sports Direct owner reported it had lowered its profit expectations for the year by £25m, citing “tougher” trading conditions after half-year sales in its retail arm fell 8.4% to £2.45bn.

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Take-home sales increased by 2.5% for the four weeks to 1 December.

Sales of premium own-label products in particular, saw a boost, with the proportion of spending on these items climbing to 5%, and expected to reach nearly 7% by the end of December.

Kantar head of retail and consumer insight Fraser McKevitt said: “Monday 23rd December is likely to be the single busiest day for supermarkets this year, although shoppers are already preparing for Christmas. We’ve seen sales of assorted sweet biscuits and biscuits for cheese double in November, and 8% of consumers have already purchased a Christmas pudding.”

The festive rush is also driving up demand for non-grocery items, with sales of general merchandise predicted to see a significant uptick. Spending on these items in December 2023 jumped 21% compared to the monthly average for the year.

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However, the cost of Christmas dinner has risen, with the price of feeding a family of four now at £32.57, up 6.5% from last year due to increases in the cost of turkey and vegetables.

Despite this, overall grocery price inflation remains stable at 2.6%, as supermarkets prioritise lower pricing and price cuts over multibuy offers.

McKevitt explained: “Retailers have been focusing on price cuts, often accessed via loyalty cards, and this is driving the increase in spending. Multibuy promotions have remained flat, but spending on price-cut offers has grown by 14%, worth £355 million more than last year.”

Over the period, Tesco saw its market share grow to 28.1%, its highest since December 2017, while sales rose by 5.2% in the 12 weeks to 1st December. Sainsbury’s also increased its share to 15.9%, with sales up by 4.7%. The two grocers now account for 44% of the UK supermarket market.

Meanwhile, discount chains continue to perform strongly. Lidl posted a 6.6% increase in sales, while Ocado outpaced the online market with an 8.7% sales growth, securing a 1.8% share of the market.

In contrast, Asda has seen a decline in sales, down 3.5% year-on-year, and continues to trail behind its competitors in terms of market share growth.

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The latest figures from the British Retail Consortium (BRC) show total sales dropped 3.3% in November, against a growth of 2.6% in the same month last year. This is above the 12-month average growth of 0.5%.

Food sales increased 2.4% year on year over the three months to November, against a growth of 7.6% in 2023 and below the 12-month average of 3.7%.

However, non-food sales slipped 2.1% in the three months dragged down by a 10.3% fall in online non-food sales.

BRC chief executive Helen Dickinson said: “While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year.

“Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.

“Retailers will be hoping that seasonal spending is delayed not diminished and that customers get spending in the remaining weeks running up to Christmas.

KPMG UK head of consumer retail and leisure Linda Ellett added: “While the majority of November’s data tells a disappointing tale for the retail sector, this reporting didn’t include Black Friday week, so the hope for retailers is that consumers were being savvy shoppers and that the promotional push in the last days of the month saw held-back consumer spend materialise and mitigate what is otherwise a disappointing month.

“If not, then we may see some retailers launching Christmas sales early.”

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According to recent Sensormatic data by the British Retail Consortium (BRC), high street footfall dropped by 3.7% in November, down from -3.6% in October.

Retail park and shopping centre footfall also slipped 1.1% and 6.1% suggesting that consumers across the entire nation “were hesitant to hit the shops”.

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Overall footfall across across all nations fell this November, with Northern Ireland down 2.8 %, Scotland by 6.8%, England by 4.2% and Wales 7.1%

London has the second biggest drop by 2.5% behind Bristol at 7.7% per cent.

The data covered the four weeks between 27 October and 23 November, leaving this year’s Black Friday one to potentially boost retailers’ optimism for the new year.

BRC CEO Helen Dickinson said: “Footfall took a disappointing tumble in November, as a later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops. Some northern cities also suffered particularly badly due to Storm Bert, which caused travel disruption towards the end of the month.

“Retailers remain hopeful that the Black Friday and Christmas sales will help to turn around the declining footfall seen through most of 2024, crucial as we enter the ‘golden quarter’.”

Sensormatic retail consultant EMEA Andy Sumpter added:  “This lacklustre footfall performance will have come as a blow for many retailers, who would have been counting on getting early Christmas trading results under their belts before the start of advent.

“However, it’s worth noting that these figures do not include Black Friday and the Saturday of the Black Friday weekend – tipped as one of the top busiest days for store shopping during peak trading – which will hopefully jump start seasonal shopping.

“Now, all eyes turn to December, where retailers hope to make up for lost ground and turn around their festive fortunes. This will rely not only on effective merchandising and shored-up inventory availability, but on building the compelling and immersive experiences that bring the seasonal magic to life in-store.”

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The trade body‘s Consumer Sentiment Monitor for the month, collected from 2,000 UK adults between 12 and 15 November, recordeded a slight improvement in personal financial expectations but continued pessimism about the state of the economy.

The report found that consumer expectations for their personal financial situation improved marginally to -3 in November, up from -4 in October.

However, expectations for the wider economy worsened slightly, with a score of -19 in November, compared to -17 the previous month.

Despite these concerns, personal spending on retail saw a small increase, rising to +3 in November from +2 in October. Overall personal spending remained stable at +17, consistent with October’s findings. Personal saving expectations remained unchanged at -9.

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BRC CEO Helen Dickinson said: “There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead up to Christmas. While there was a very slight improvement in people’s expectations of their personal financial situation, this was offset by declining expectations of the wider economy.

“Personal retail spending remained positive, edging up slightly, though this was to be expected as consumers prepare for the festive season. Within this, non-food spending expectations remained low, though expectations of spending on eating out improved the most out of all categories, as people prepare for Christmas catchups with friends and relatives.

“The last month clearly did little to shift the dial for households either positively or negatively, however, the same cannot be said for the retail industry.

“With over £7bn in additional costs in 2025 resulting from the Budget, retailers will have little choice but to raise prices or reduce investment in jobs and shops. To mitigate this, government must ensure that changes to the business rates system, planned for 2026, bring about a meaningful reduction in bills for all retailers.”

Earlier this week, the BRC warned that food inflation could soon be on the rise due to rising costs.

Over 70 retailers including Tesco, Sainsbury’s, Next, Amazon, and Boots wrote to Reeves last week, cautioning that the “sheer scale” of the new costs on companies would increase inflation as “it will not be possible to absorb such significant cost increases”.

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