Latest footfall data adds to evidence that the retail sector suffered a disappointing start to 2024.
The BRC-Sensormatic IQ analysis shows total UK footfall decreased by 2.8% year-on-year in January. However, the figure did represent a slower rate of decline than the 5% drop seen in December.
High Street footfall decreased by 2.3% in January, while Retail Parks were down 1.8% and Shopping Centres slipped 5.0%.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), said: “Footfall remained on a downward trajectory in January, albeit at a slower rate than in December. Many consumers appear particularly bargain-focused, with the first half of the month boosted by the January sales. However, the latter part of January saw fewer shoppers out as stormy weather led to a bigger footfall decline in Shopping Centres and High Streets.
“Retail plays a vital part in every community across the country – providing the goods that we need, as well as local jobs and investment. As we move towards a higher-skilled, digitally transformed, net zero future, there is a need for more investment in every part of the UK. It is vital the next Government finds ways to unlock the full potential of the retail industry, increasing the investment needed to boost local and national economic growth.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic Solutions, added: “With disruption from two named storms in January dampening footfall on the High Street, retailers also faced tempestuous trading conditions caused by the ongoing cost-of-living spending squeeze and stubbornly sticky inflation. Despite January’s shopper traffic levels remaining down, this was an improved year-on-year performance when compared to December, which – while marginal – may signal the beginning of a bounce back, giving retailers cause for cautious optimism for a recovery.
“Many will be hoping as inflation continues to slow, consumer confidence will start to rise enough to loosen the squeeze on incomes to the point that this begins to materially translate into both footfall and sales.”
NAM Implications:
- Lower footfall as consumers succumb to cost of living pressures.
- And those still buying are more savvy.
- Welcome to the New Norm…
- …where savvy consumers demand demonstrable value for money.
- (and are prepared to shop around where necessary)
- i.e. your offering had better be good and better than available alternatives, every time..
