Retailers see another month of footfall growth in May
Retail footfall levels saw month-on-month growth for the third consecutive month in May, new figures have revealed.
Data released by Ipsos Retail Performance in its Retail Traffic Index, has shown that the number of shopping visit numbers to non-food stores rose by 1.4% from April to May, although they were 4.2% lower than a year ago.
Dr Tim Denison, director of retail intelligence at Ipsos Retail Performance, said: “This is the first time since 2008 that we have recorded monthly footfall growth in the three months of March, April and May.
“By itself the trend may not be too revealing, but there is a certain symmetry appearing among various industry data and business survey results. Company failings are at their lowest level since that heady period in early 2008. Personal insolvencies, too, match that trend. The Purchasing Managers’ Index for services in April hit an eight month high and we have also seen headline inflation ease to 2.4% in April, the first fall since last September.
“There are some metrics heading in the other direction, such as the latest CBI survey results, but just a few months ago trying to find one positive headline statistic was just as difficult as finding a steerable shopping trolley. All are signs of nascent improvement in the UK economy.”
The strongest month-on-month growth was seen in London and the South East where footfall levels rose by 2.6% in May. This was followed by South West England and Wales where footfall grew by 2.5% and by the Midlands where there was growth of 1.5%.
However, the figures were weaker further north in the UK. In Northern England, there was a slight increase of 0.2%, while in Scotland and Northern Ireland there was a fall of 0.7% on April’s footfall levels.
In all parts of the country except London and the South East, the first week of the month was the strongest, and in the Midlands, South West England and Wales it was the third busiest week of the year so far.
Denison continued: “We had expected to see healthier footfall figures at the end of Q1 going into Q2, on the back of a gradual recovery in the economy, and it’s good to see some emerge
“However, conditions remain weak and variable. Retailing is very sensitive to disposable household income and this is likely to shrink again in the near future. Inflation is expected to hit 3% in Q2 whilst wage growth is travelling in the opposite direction.
“So there may well be another bump in the road immediately ahead; it’s certainly too early to talk about a retail revival. On the upside, the significant rise in equity prices could help repair confidence and the Help to Buy scheme should stimulate the housing market, which helps drive retail demand. There is a sense that we are now out of the ‘groundhog’ period into something new.”
