Festive celebrations are proving to be a powerful driver of retail performance with Christmas light switch-on events significantly boosting consumer spending, extending dwell time, and drawing shoppers from a wider catchment area.

Research from data specialist, CACI, indicates that retail spending increases not only on the day of light switch‑on events but continues into the following week.

Light switch‑on events at Carnaby Street and Covent Garden, both operated by Shaftesbury Capital, have attracted substantial uplifts in footfall. Carnaby Street recorded a 10% increase in visitors compared with the same day last year. Footfall then surged by 20% and 26% on the Saturday and Sunday following the event respectively, compared with 2024 data.

Covent Garden also saw consistently high visitor volumes in the days after its switch‑on, with more than 14,000 visits per hour recorded during peak periods.

“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.”

Catherine Riccomini, Director of Marketing and Communications, Shaftesbury Capital

The data shows clear benefits across all major retail categories, with food and beverage seeing the strongest growth. On event days, spend in this category rose by 29% compared with the equivalent day the previous week, and remained 15% higher week-on-week.

Other categories also experienced notable uplifts. Fashion spending increased by 13% on the day and 9% across the week. Entertainment and gifting rose by 10% day-on-day and 8% week-on-week, while the health and beauty sector saw a 10% uplift week-on-week. On average, retail spending on switch-on days rose by 11%, with shoppers visiting 2.1% more stores per trip in the week after.

The analysis also identified changes in visitor behaviour. Shopper drive time increased by up to 3.2%, suggesting that the events appeal beyond local audiences.

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.”