The Boxing Day challenge

Boxing Day used to be about little more than lazing around eating turkey sandwiches. Today it is increasingly about shoppers turning out in force to fight for a bargain.

This year, with Boxing Day falling on a Saturday, more retailers than ever are likely to open their doors. But will either staff or shoppers want to leave their cosy living rooms and venture out to stores?

Bluewater general manager Andrew Parkinson says the centre has seen incremental footfall increases on Boxing Day of 10% year on year since the centre amended the core trading hours on Boxing Day in tenants’ leases in 2004.

About 100,000 people shopped at Bluewater on Boxing Day last year and it is expecting around 140,000 will visit this year, the usual Saturday average being 120,000. “For us it’s a very busy day and is probably growing faster than any other day, but it still has a way to go to catch up on the December 27 and 28,” says Parkinson.

This year Boxing Day falls on a Saturday with the bank holiday shifting to the Monday. Crowds of about 200,000 can visit on December 27 but with that date now falling on a Sunday many experts are forecasting the biggest shopping day will be Monday 28.

At the Trafford Centre retailers are also obliged under the terms of their leases to open on Boxing Day. It is the only place where John Lewis opens on that day.

“Boxing Day has always been big and is one of our biggest three days of the year – the only bigger being the 27 and 28 December,” says Trafford Centre director of operations Gordon
McKinnon.

“We are expecting to smash all records this year with around 140,000 shoppers expected and £5m spent,” he says.

The Trafford Centre will be open for 12 hours this Boxing Day – up from 10 last year. “It’s well worth being open and ready for that trade. People are coming in armed with their Christmas money and they are going to spend it,” says McKinnon. 

Toy retailer The Entertainer – which refuses to open on Sundays for religious reasons – began opening on Boxing Day two years ago and says that it has been a success. “Boxing Day is not a religious day but up until two years ago we resisted Boxing Day opening because our staff need a day off,” says chief executive Gary Grant. “However, for the last two years we have opened the majority of our stores on Boxing Day and closed on New Year’s Day because we looked at the trading patterns and Boxing Day was bigger,”
he says.

This trend is backed up by Experian Footfall research, which shows that Boxing Day footfall was up by more than 7% in 2008. “More people will open because they can see that post Christmas is now the busiest period,” says Experian Footfall retail analyst Anita Sharma Manan.

Indeed this Boxing Day will see some notable firsts, with retailers such as Next beginning its Sale on Boxing Day, and Harrods also opening on December 26 for the first time.

A Harrods spokeswoman says the decision to open for a full day of trading on Boxing Day had been taken in order to satisfy customer demand.

For others, such as Boots, it’s business as usual. “We normally trade on Boxing Day in many locations and this is about listening and matching customer expectations,” says, Boots UK head of trading operations Michael Stredder.

He adds: “We are treating Boxing Day as a special trading day as the demand will vary depending on store location, size and customer demand.”

Tesco will open 252 of its biggest stores, compared with 120 last year and just 10 the year before. Meanwhile Sainsbury’s is opening 94 supermarkets, compared with last year when it only opened its Scottish stores and a small number in England.

Premium rates of pay

Of course, while it is great for embattled retailers that shoppers are out in force and wanting to spend, the challenge is persuading staff to work just a few hours after they may have finished their Christmas celebrations.

“This year’s Boxing Day trading is a contentious issue for the retail industry and the question of staffing is likely to be a key issue,” says Brian Campbell, sales and marketing director for Recruit Retail Services, who suggests outsourcing non-customer facing duties
on the day.

The limited opening hours and premium rates of pay traditionally associated with Boxing Day can make the requirement to work so close to Christmas an easier one for staff to swallow. However, with the bank holiday shifting to the Monday normal trading applies.

Eversheds head of discrimination law Audrey Williams, says retailers will face a tough decision on how they handle staffing on Boxing Day. “Retailers have to balance the staff issues against trading but need to be cautious of motivation and the wider issues that may create difficulties of staff not turning in for work,” she says.

 Staff often wrongly assume they don’t have to work on a bank holiday, but Pinsent Masons employment lawyer Ben Doherty says this is not true. “There is no statutory right that says you don’t have to work on a bank holiday,” he says. “The deciding factor is whether under your contract of employment the employer can require you to work.”

Shopworkers union Usdaw urges retailers to follow the lead of companies such as Tesco, Sainsbury’s, Morrisons and Co-op. “Even though Boxing Day falls on a Saturday all have designated the day as a customary bank
holiday. This means that all working on that day should be voluntary and will attract premium pay. We would hope if other retailers do choose to open they will follow their lead,” says an Usdaw spokesman.

Asda is following suit. Although its supermarkets will remain closed, its 21 Asda Living stores will open. “At Asda bank holidays are fixed to the days in which they fall so Saturday December 26 is classed a bank holiday and the normal incentive of time and a half will apply to any store colleague that chooses to work,” says a spokeswoman.

Grant admits staffing on Boxing Day is a challenge. “It’s done reluctantly because staff would prefer to have the time off, but we do try to spread days off over Christmas and New Year. For us it’s a balance of trading and looking after our staff,” says Grant.

Flexible working

Argos will open all its stores on Boxing Day and says it has worked with its store management teams to ensure a flexible approach to working hours. “Each store will be scheduling its individual staffing arrangements with a mix of experienced colleagues supported by seasonal employees. Argos will be arranging short shifts and flexible working so that everyone can enjoy the bank holiday festivities,” says a spokeswoman.

Of course, opening on Boxing Day brings other problems – namely retailers having to squeeze in Sale preparation activity before they leave the store on Christmas Eve.

But although the trend may be for more retailers to open more stores than ever, it is perhaps a relief for staff that some are still sticking with tradition.

 John Lewis director of selling operations David Barford says: “Having listened to our customers and in consultation with our partners we have decided that our current stance of closure on Boxing Day strikes the right balance between optimising the commercial opportunities of the Christmas and clearance period while also giving our partners an opportunity to spend quality time with families and loved ones at this important time of the year.” However, the department store operator stresses that this could change.

Indeed for those that don’t open on Boxing Day all is not lost. Many retailers start their Sales online before Boxing Day dawn has even broken. “Boxing Day is the busiest time of the year for visits to retail sites and has been becoming more significant in the last two or three years,” says Experian Hitwise research director Robin Goad.

Consumers clearly have an appetite for post-Christmas spending. And, despite the challenges, with the timing of Boxing Day this year and staff keen for extra shifts, it is a better time than ever to give trading that day a try.