Christmas light switch-ons spark spend surge of up to 29 percent, reports CACI

Festive celebrations are proving to be a powerful driver of retail performance, according to new analysis from CACI, the data specialists focused on people and place. The company’s latest insights reveal that Christmas light switch on events significantly boost consumer spending, increase dwell time, and attract shoppers from a wider catchment area.

CACI’s research shows that spending across all major retail categories rose both on the day of the light switch on events and in the week that followed, demonstrating the sustained impact of these festive moments.

The food and beverage sector saw the most dramatic lift, with spending rising 29 percent on the event day compared to the previous week’s equivalent day (DoD), and maintaining a 15 percent uplift week-on-week (WoW). Other sectors also saw impressive gains including fashion (+13 percent DoD, +9 percent WoW), entertainment and gifting (+10% DoD, +8% WoW), whilst health and beauty saw a +10% increase WoW.

Overall, spending on event days increased by an average of 11 percent versus the same day the previous week, with shoppers also visiting an increase of stores per trip by +2.1 percent in the following week – clear evidence of the events’ role in creating more valuable, engaged visits.

Beyond spend, CACI’s analysis highlights shifts in visitor behaviour, with average shopper drive time increasing by up to 3.2 percent, indicating the Christmas events attract shoppers from further afield. This expansion of catchment underscores the commercial potential of investing in destination-led festive events.

The impact on footfall has been evident in the last two weeks, with Shaftesbury Capital’s Carnaby Street and Covent Garden light switch-ons attracting significant uplifts in visitor numbers. On the switch-on day for Carnaby Street, footfall was 10 percent higher than the same time last year. The halo effect, highlighted by CACI’s analysis of the longevity of positive performance beyond just the switch-on date, was also evident, as Carnaby Street had 20 percent and 26 percent footfall increases on the following Saturday and Sunday respectively, compared with 2024, while Covent Garden has consistently had more than 14,000 visits per hour during peak periods in the days that followed its light switch-on.

Alex McCulloch, Director at CACI, said: “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.”