Numbers of customers visiting stores in England by midday on Wednesday – when restrictions were eased – soared 85.2 per cent. One retail campaigner stressed the importance of how millions of individual decisions to shop locally “add up to one big impact to boost small businesses at this difficult time”. Analysts Springboard said the increase was “virtually double” what forecasters had predicted for the first day of eased restrictions, adding that it highlighted the desire of shoppers to visit stores and experience Christmas shopping in person.
Andy Bromley, director of global market research agency Spark Emotions, said: “We predict that up to £10billion could be spent in physical retail alone this weekend as shoppers return to the high street.
“This week we conducted our monthly Mood Of The Nation survey, which measures shopper attitudes and spending habits, and it revealed that the prospect of going back to stores to conduct Christmas shopping increased shoppers’ levels of excitement and happiness.
“Retailers will be looking to tap into this positive emotional state, with 56 per cent of shoppers in the survey saying they are prepared to spend more than they planned to enjoy Christmas.”
Mr Bromley previously estimated up to £35billion could be spent inside stores in the four weeks before Christmas.
The shopping bonanza is expected to be driven by pentup demand for food, drinks and Christmas presents.
Although restrictions have been tough for many – causing some financial hardship – lots of people have stayed in work and are now keen to spend the money they have saved during lockdown.
Richard Lim, chief executive of Retail Economics, said: “What we’re seeing is quite a big polarisation between wealthy and poorer households.
“Households have seen a significant boost in their discretionary spending power from cancelled holidays, less commuting and fewer nights out.
“A successful Christmas for many retailers will hinge on whether these families splurge over the festive period and treat their friends and families after such a difficult year.”
The news comes as figures show that Covid-19 infections have continued to fall in England, dropping by almost a fifth in a week, according to the Office for National Statistics.
Its survey estimated that 521,300 people had the virus in the community in the week to November 28, down by 18 per cent from 633,000 the before.
Scientists announced the UK’s R number – the rate that infected people are infecting others – is 0.8-1.0, down from 0.9-1.0 last week and the lowest since August 14.
As the glad tidings draw people out of their homes, a number of shops have extended their opening hours to try to attract more customers safely in the run-up to Christmas and through January.
Supermarkets such as Aldi, Sainsbury’s, Tesco and Waitrose will open their doors for longer this month, while John Lewis, Ikea, Currys PCWorld, Marks & Spencer, Primark and The Entertainer are also extending their hours.
On top of that, shoppers can take advantage of longer trading hours today, which is Small Business Saturday, an annual event designed to encourage consumers to shop locally and support small businesses.
At least seven in 10 shoppers say they plan to visit these outlets this month, delivering a £6.2billion bonus.
The research, by American Express, also showed that shoppers plan to spend an average of £169 at smaller firms, including butchers, greengrocers and florists. Michelle Ovens, director of Small Business Saturday UK, said: “Lockdown and the closure of non-essential shops has led to a compressed Christmas trading period for small retailers in a vital time.
Surge “We are optimistic that with shops now able to reopen and many small firms being really entrepreneurial about the tactics they use to attract shoppers that they will be able to make up lost sales.”
The surge in shopping has also benefited charities. Cancer Research UK said income from its shops grew by a “phenomenal” 39 per cent on Wednesday compared to last year, and was 62 per cent more than expected. Spending on its Christmas cards in England and Wales exceeded £200,000.
Josephine Mewett, from the charity, said: “Despite the current closure of our Scottish and Northern Ireland shops due to lockdown, we’re thrilled to have exceeded our national income target from the sale of donated items by 24 per cent.
“The pandemic is causing a huge strain on charities. We expect to see our fundraising income decline by £160million this financial year, so it’s heartening to see our customers coming back in to our shops.”
Meanwhile, research by Barclaycard found that one in five people plan to splash out on a big-ticket item in the near future. Family holidays top the list, followed by home improvements and furniture.
The poll also found that a third of people were feeling more upbeat about their finances and job security, especially since Covid-19 vaccines are just around the corner.
Barclaycard spokeswoman Raheel Ahmed said: “There’s certainly a growing feeling of optimism. Retailers will be hopeful for a surge in spending.”
