Post-Christmas sales shopping fall

LONDON - After a surge in post-Christmas sales shopping on Wednesday, fewer shoppers hit the high street on Thursday, adding to signs a consumer slowdown may be in the offing.

The Retail Footfall Index released on Friday showed December 27 failed to live up to analyst predictions it would be the busiest shopping day of the year with shopper traffic falling 2.9 percent compared with the same day in 2006.

By contrast, Boxing Day on Wednesday saw a 25.1 percent footfall surge as stores moved to early discounting in order to lure shoppers, signalling sales were lacklustre prior to Christmas.

"The question now is whether the unpredictable shopping patterns witnessed in early December will kick back in once the festive season comes to an end and day-to-day financial realities, such as interest rates and personal debts hit, hit home," said analyst Martin Davies from Experian, compiler of the footfall index.

Amid signs consumers are nervous about high interest rates and falling house prices and are reluctant to spend, analysts have cautioned a post-holiday spending spree may be too little, too late to shore up weakened trading and crimped gross margins.

Still, there is evidence some retailers are still likely to be winners from the crucial festive trading period.

More than 36,000 people had come through the doors of premium department store Harrods by 1 p.m. on Friday, four hours after it opened its annual post-Christmas sale.

Harrods spokesman Michael Mann said women's accessories and fashion and men's wear were selling particularly well.

"I think the mild weather is encouraging people to go out and shop," Mann said.

Dixons.co.uk, part of DSG International, reported record visitors to its website on Christmas Day and Boxing Day. Christmas visitors rose 100 percent on 2006 and Boxing Day visitors were up 40 percent.

Top products customers were clicking to find includes TVs, MP3 players, laptops, fridges, freezers and washing machines.