DECEMBER delivered a welcome boost for Welsh retail, closing the year on a far more optimistic note than many had anticipated. Footfall rose across all Welsh retail destinations, with visits up +4.6% year on year and +5.7% month on month, highlighting the continued importance of physical retail during the peak festive trading period. Retail parks in Wales led the annual growth recording a +5.1% increase, followed by high streets (+4.8%) and shopping centres (+3.7%).
Encouragingly, this marks the strongest annual uplift in December since 2011, driven not just by daytime visits but by a significant rise averaging +6.8% in evening and night-time footfall after 5pm. This reinforces a trend that was prominent in 2025 with the growing role of leisure, hospitality and experience-led visits in supporting retail performance, especially in town and city centres.
Momentum built steadily throughout the month following a steady Black Friday period, before accelerating sharply in the final days before Christmas. Christmas Eve emerged as the core day for pre-Christmas shopping, with footfall up +7% year on year in all Welsh retail destinations, as shoppers made last-minute trips for those festive purchases, particularly to retail parks and shopping centres where convenience was key.
This continued into Boxing Day with the strongest performance recorded in a decade, as footfall rose +13.3% year on year across all Welsh retail destinations. Notably, with a number of stores remaining closed on Boxing Day, shoppers may well have combined sales trips with dining, leisure and socialising with much of the uplift driven by activity later in the day, reinforcing how post-Christmas trading is increasingly shaped by experiences rather than purely transactional shopping.
However, while December provided a much-needed boost, retail leaders remain realistic about what lies ahead. MRI Software’s Insights from the Inside revealed that 76% of retailers expect January sales to be lower than January last year, highlighting the caution that continues to shape trading strategies but is typically expected after December. This follows a festive period where 64% of retailers reported lower sales in the week leading up to Christmas, despite the stronger footfall patterns seen across many retail destinations.
That said, there are early signs of resilience carrying into the new year. 38% of retailers say Christmas returns have already delivered a positive impact on sales, helping to sustain footfall into early January and offering a valuable opportunity to re-engage shoppers post-Christmas.
What December has made clear is that footfall growth is no longer guaranteed by presence alone. Recent store closure announcements have highlighted the structural pressures facing the sector and reinforce the reality that, for physical retail to thrive in 2026, retail leaders must be far more deliberate in how they attract, engage and retain shoppers.
Against this backdrop, December’s stronger performers were likely the stores and destinations that moved quickly and acted on insight. MRI Software’s Insights from the Inside shows that 83% of retailers actively used social media to drive footfall during the Golden Quarter, using digital channels to build urgency, spotlight in-store experiences and convert online engagement into physical visits at key trading moments.
Crucially, this digital engagement was most effective when paired with real-time, on-the-ground data. Retailers leveraging data and insights into dwell time, shopper movement and peak trading periods were likely better able to align staffing, refine store layouts and tailor promotions to how consumers were actually behaving in store, rather than relying on historic assumptions. As retailers continue to review their estate portfolios, this level of insight is becoming fundamental in determining which stores to invest in, evolve or, in some cases, exit.
The in-store environment itself also plays a defining role. Facilities management is a critical, yet often overlooked, driver of performance, with clean, safe and well-maintained spaces supporting longer dwell times and reinforcing shopper confidence. In a landscape which is becoming increasingly rationalised, the quality of the in-store experience is proving to be just as important as location alone, particularly as consumers become more selective about where they choose to spend their time.
As we move into January, footfall is expected to soften, but December has demonstrated that physical retail remains resilient when shoppers are given a compelling reason to visit. Retailers and destinations that continue to blend data-led insight with experience-driven environments – spanning retail, leisure and hospitality – are likely better placed to navigate the quieter weeks ahead and build sustainable momentum into 2026.
