Consumers helped themselves to a generous measure of Christmas cheer over the festive period, increasing spending across all major categories from department stores to supermarkets. Pubs surged 13.7 per cent and restaurants fared similarly well, up 13.1 per cent, thanks to office parties and family gatherings before Christmas.
Total retail spending grew 4.0 per cent year-on-year over Christmas, according to the latest data from Barclaycard, which processes nearly half of all credit and debit card transactions in the UK. But this growth was driven entirely by online shopping, which saw the strongest year-on-year increase since April 2012, jumping 17.9 per cent. The high street suffered tough trading conditions, with in-store spending growth almost static at 0.2 per cent.
The strong performance saw online sales account for a quarter (24.6 per cent) of total spend, which has only once been surpassed, in January 2015 (25.4 per cent).
Department stores were a bright spot on the high street, with in-store spend growing 4.5 per cent, but even here digital dominated, as online spend increased 18.0 per cent, resulting in overall department store growth of 7.2 per cent.
Leisure activities
Between the shopping sprees, consumers showed a clear demand for leisure activities. The entertainment category as a whole grew 12.8 per cent, with pubs surging 13.7 per cent and restaurants faring similarly well, up 13.1 per cent, thanks to office parties and family gatherings before Christmas.
The force was also strong with cinema spend, which spiked 81.9 per cent during the week of release for Star Wars: The Force Awakens. Growth more than doubled (109.6 per cent) the following week, compared with the seven days prior to the debut – demonstrating the power the film commanded over wallets nationwide versus an average week.
Biggest ever Black Friday
December’s online spend growth followed the biggest ever Black Friday, which rocketed 15.1 per cent compared to the same day last year. The average transaction value of online purchases rose 6.6 per cent as well, suggesting shoppers are becoming more confident about making major purchases online. Once again the high street lost out, suffering a 6.7 per cent decrease in spending and a drop of 7.8 per cent in average transaction value. As a consequence, overall spend on Black Friday was down 1.0 per cent versus 2014.
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