Christmas in London 2025, The Surge That Is Coming, And The January Dip You Cannot Ignore

The Four Week Festive Surge Is Real And The Data Supports It

Forecasts indicate that Christmas 2025 will generate significant spending. UK consumers are expected to spend £91.12 billion across the festive period which represents a 3.2 percent increase on last year.  UK shoppers set to spend £91bn on Christmas this year

Fashion is predicted to be one of the strongest performing categories. AlixPartners has reported an expected 3.8 percent rise (inflation adjusted) in clothing and footwear sales for Christmas 2025. 2025 UK Retail Christmas Forecast

Online activity is also increasing. Adobe expects UK holiday ecommerce to reach £26.9 billion which is 4.2 percent higher than last year. Holiday Shopping Report 2025

Footfall indicators across central London point toward the same trend. New reporting has noted rising visitor numbers at locations including Covent Garden and Winter Wonderland as both destinations continue to attract early-season crowds. London’s top festive attractions draw early visitors

All signs point toward a concentrated four week surge.
It will be intense.
It will also be brief.

January Arrives Quickly And The Dip Is Sharper Than Expected

December spending is driven by gifting, social plans and the emotional pressure of the season. People upgrade purchases, go out more often and make decisions at a faster pace. January is different. Budgets tighten, behaviour changes and spending becomes far more considered.

Digital Commerce 360 has reported that non essential spending in the UK drops sharply as soon as the Christmas period ends and January often records the steepest decline in the yearly cycle. UK retail sales dip in January following Christmas boom

CGA Strategy has noted a similar pattern within the eating and drinking out sector. Their January analysis showed reduced sales and footfall at the start of the year while operating costs remained static. Hospitality suffers a January hangover

The pattern is predictable.
The impact can still feel sharp if brands are not prepared.

London Businesses Already Thinking Past Christmas 2025

Some well known names have already begun planning beyond the festive rush.

John Lewis has historically prepared its post-Christmas operations early and recent reporting confirms the same approach for 2025. Their early planning focuses on returns and customer support which are key parts of the early year peak. John Lewis prepares for busy returns period

Pret continues to drive subscription sign ups in December which has been widely covered as a core part of the brand’s year round revenue model. These subscriptions create predictable sales in January when footfall naturally softens. Pret subscription model continues to grow

Dishoom has highlighted breakfast as a strategic part of its growth plan and has consistently grown morning trade. Their focus on early daypart experiences helps stabilise January when evening bookings typically decline. Dishoom growth strategy

Winter Wonderland and Covent Garden continue to extend festive activity into early January which helps keep footfall in the area slightly higher than the citywide average when the new year begins. London attractions extend festive schedules

These examples show a shared pattern. The strongest brands do not treat Christmas as the end of the story. They treat it as the beginning of the next phase.

How To Prevent A Sudden Drop When January Arrives

The most effective January strategies begin in the first week of December.
The goal is continuity. Not panic.

Capture meaningful customer data during the festive peak and prepare early year campaigns before the slowdown begins. Maintain visibility across digital channels rather than going quiet. Create January experiences that match the calmer mood of the month. This may include small events, seasonal products, early year menus or exclusive releases that do not rely heavily on discounting. Ensure operational plans reflect realistic January behaviour so costs remain balanced and pressure stays manageable.

These steps turn December momentum into early 2026 stability.