As Underground staff threaten to strike on Boxing Day, fears grow that it will damage a crucial part of the capital's economy at its most important time of year.
In recent years, Boxing Day has grown in importance for retailers, with more stores than ever now launching their post-Christmas sales on December 26. With the VAT hike due in January and tough times predicted for 2011, many retailers were hoping a successful Boxing Day would make a major contribution to a final big week before January gloom sets in.

The proposed Boxing Day strike, if allowed to go ahead, could be a massive hit for London retailers and potentially the economy as a whole. According to the British Retail Consortium, nearly a fifth of all the UK's retail spending takes place in London, generating a turnover of £54 billion last year. The organisation added that retailing in the capital provides jobs for 380,000 people.

BRC director general Stephen Robertson said of the strike: "This could be a major blow for London's retailers and their customers on what's now one of their most important days of the year. 380,000 jobs directly depend on a successful retailing sector in the capital."