Retail footfall in the UK rose in January following a disappointing festive season, as cash-strapped shoppers went hunting for bargains in the New Year sales.
The BRC-Sensormatic analysis shows total footfall climbed 6.6% in January, a significant improvement on the 2.2% year-on-year fall recorded in December.
High Street footfall increased by 4.5% last month after a 2.7% decline in December, while retail park footfall jumped 7.9% having been unchanged during the festive period. Shopping centre footfall was up 7.4% in January after a 3.3% decrease the month before.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), commented: “Shopper footfall received a welcome boost in January following a disappointing festive period. Store visits increased substantially in the first week of the month as many consumers hit the January sales in their local community, with shopping centres faring particularly well. Despite snowy weather and Storm Eowyn causing disruption in some areas, footfall was still positive across major UK cities over the whole month.
“Improved shopper traffic is welcome news for high streets following a particularly difficult ‘Golden Quarter’ to end 2024, and low consumer sentiment to start the year. Retailers want to invest more in stores and staff to enhance the shopping experience for customers and help to grow the economy, but the swathe of additional costs from April will limit investment and lead to job losses and higher prices at the tills. To drive growth in communities across the country, the government must ensure costs are limited in other areas. This can be done by delaying packaging taxes and ensuring that business rates reform leaves no shop paying more than they currently do.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, added: “While welcome, after months of erratic and constrained footfall, the jury’s out as to whether January’s store performance signals the start of a sustained High Street revival or if it will be a flash in the pan come February. And, even if shopper traffic recovery has finally turned a corner, the challenge for retailers will be solving the next conundrum; how they balance enhanced footfall – which requires optimised store staffing to convert into sales – and the significant rises to labour costs borne out of the Budget on the one hand, with consumer appetite for discounts – a long-term margin-eroder – on the other, which will not be an easy circle to square.”
