Festive shopping slumps as cautious consumers hold back spending
Retail spending over the festive season has shown mixed results this year. While some payment providers reported growth, overall figures suggest a slowdown compared to previous years. Shoppers appear cautious despite signs of improving consumer confidence.
Boxing Day, usually the busiest shopping day of the year, saw fewer transactions than expected. Worldline processed 563,303 sales between noon and 1pm, a 7% drop from 2023. This marked the lowest peak in six years, falling well short of the 2019 record of 679,436 transactions.
The trend reflects broader concerns in the retail sector. High prices, delayed benefits from lower interest rates, and worries about job security have kept spending subdued. Even Black Friday, another key shopping event, saw softer sales this year. Official data showed a slight improvement by late November, with annual spending up 1.6%. However, the first three weeks of December still recorded a 1.3% decline compared to 2023. Meanwhile, PayPal reported its highest consumer transaction numbers in December 2024, with a year-on-year increase. Despite the cautious spending, consumer sentiment has shown signs of recovery. ANZ bank’s latest survey revealed the highest confidence levels in four years. Yet rising long-term mortgage rates could further dampen household budgets in the coming months.
The festive shopping season has highlighted a divided retail landscape. While some payment platforms saw growth, overall spending remains weaker than in past years. With economic pressures still weighing on households, the outlook for early 2025 stays uncertain.
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