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Boxing Day sales hit record levels

By Elliot Wright, 29th December 2009

A record number of shoppers hit the high streets on Boxing Day this year, according to retail analysts.

It is thought that up to 12 million people passed through shop doors looking for bargains on the day after Christmas. This was a 20% increase on Boxing Day in 2009, said Experian.

Up to 12 million people passed through shop doors looking for bargains

The rise is thought to be due Boxing Day falling on a Saturday this year as well as the fact that the VAT is returning to 17.5% on 1 January 2010.

The British Retail Consortium hailed the Boxing Day figures as "remarkable" but warned that the High Streets are expecting a gloomy 2010.

The BRC said that 80% retailers who responded to its survey were not expecting sales to improve on 2009 levels, dashing hopes of a consumer-led economic recovery.

VAT was temporarily cut to 15% by the government last year in a bid to encourage consumers to spend more and boost the flagging economy.

With the tax set to rise again, bargain hunters were snapping up big ticket items such as televisions and furniture as it is these items that will see a large proportional rise in cost.

A spokesman for consultancy firm Planet Retail said: "The cold weather just before Christmas meant people weren't spending money as much.

"People on variable mortgages are still quite cash rich and now are thinking 'we want to take advantage of this before the VAT spike', particularly on big ticket items such as televisions and white goods."

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