Festive events, particularly Christmas light switch‑ons, are proving to be significant contributors to retail performance across the UK, according to new research by CACI. The data analysis firm, which focuses on the intersection of people and place, has released fresh insights revealing the sustained commercial impact of these seasonal celebrations.
CACI’s latest findings indicate that retail spending increases not only on the day of light switch‑on events but continues into the following week. The data shows clear benefits across all major retail categories, with the food and beverage sector registering the most pronounced gains. On event days, spend in this category rose by 29% compared with the equivalent day the previous week, and remained 15% higher on a week-on-week basis.
Other categories also experienced notable uplifts. Fashion spending was up by 13% on the day of the event and 9% over the week. Entertainment and gifting rose by 10% DoD and 8% WoW, while the health and beauty sector saw a 10% uplift week-on-week. On average, retail spending on switch-on days climbed by 11%, with shoppers visiting 2.1% more stores per trip in the subsequent week.
The analysis also identified behavioural shifts among visitors. Shopper drive time increased by up to 3.2%, suggesting that the events extend their appeal beyond typical local catchments. This trend highlights the wider geographical draw of well-executed festive experiences and underlines the value of such events as part of broader destination marketing strategies.
The effect has been visible in real-world examples. Light switch‑on events at Carnaby Street and Covent Garden, both operated by Shaftesbury Capital, have attracted substantial increases in footfall. Carnaby Street recorded a 10% increase in visitor numbers compared with the same day last year. More strikingly, footfall surged by 20% and 26% on the Saturday and Sunday following the event, respectively, compared with 2024 data.
Covent Garden also experienced consistently high visitor volumes in the days after its switch‑on, with over 14,000 visits per hour recorded during peak periods.
Alex McCulloch, Director at CACI, commented: “Major festive events such as Christmas light switch‑ons aren’t just for show or to celebrate the season, they play a vital role in driving engagement and spend, not only on the day itself but in the surrounding trading weeks. Our insight quantifies the impact, which is cross-sector, but you can really see how the likes of restaurants benefit from the moment and can even come to rely on it, at a time when people might have less of a focus on the experience economy and more on buying things. The best examples of light switch‑ons are strategically planned with all parties in mind, ensuring marketing, operations, and tenants are aligned to maximise the opportunity.”
Catherine Riccomini, Director of Marketing and Communications at Shaftesbury Capital, added: “The Carnaby Street and Covent Garden Christmas light switch‑ons are important dates in the calendar every year, but the impact lasts the entire festive season. Switch‑on day clearly brings people together, and that social connection naturally makes us all want to enjoy the evening, staying for longer and visiting a nearby shop, restaurant, pub, or bar. Beyond that, you can see the consistent demand for a Christmas experience in the footfall uplift we’ve had in the days that follow. Visitors come in their thousands every day just to experience the lights, and the opportunity that creates for our brands across all sectors is huge.”
These findings follow CACI’s recent announcement identifying beauty, footwear, and social wellness as the top three drivers of the UK retail market, reflecting shifting consumer expectations and preferences in localised retail and leisure offerings.
