The mystery artist known as Robin Loxley arranged for Father Christmas to sit outside the former John Lewis building, giving out envelopes containing cash as well as works of his art.
He arrived outside the building at around 11am, and spent around 15 minutes giving out the gifts, in exchange for donations to the MacMillan Cancer Care charity.
The money was collected by Sheffield’s famous ‘man with the pram’ John Burkhill, who is trying to raise £1 million for the charity, and is taking part in a Christmas Day fundraising walk for the cause.
Santa set up in front of a sign saying Santa’s Grot Hole.
One resident said she had seen Santa. She donated £20 to his charity, and received cash back, as well as a piece of art. She said she ended up with more money than she had put in.
Travis Baranowski, aged 16, of Shirecliffe, was there with his mum, Rachel.
He was pleased with his art.
She said: “It’s been great – it feels really Christmassy.”
Robin had not announced where he would be, other than to say the 'city centre'.
He described how he would be giving out £2,000 worth of ‘art and cash’ and ‘very merry Christmas crackers’.
He said this was Santa's conclusion to his long journey to Sheffield, and he would allow a select few a Christmas gift or two.
“Hoping to make the happy shoppers of Sheffield even happier,” he added.