Post-Christmas slump makes way for small retail recovery
February’s Retail FootFall Index showed a promising increase of 3.5% in UK shopper numbers compared to the previous month.
However, this follows a particularly weak January and the gap in footfall levels continues to widen year-on-year, with the RFI showing a decrease of 6.5% compared to February 2006.
Martin Davies, spokesperson for FootFall, comments: “The financial excesses of Christmas took their toll on consumers this year. However, by February many were recovering and the interest rate hold further boosted spending confidence, with the RFI recording a rise in shopper numbers of 3.5%.
“This post-Christmas slump and subsequent uplift is a similar pattern to that seen in the last two years. However, while the peaks and troughs in shopper numbers track those of previous years, the gap in terms of decreasing visitor numbers is widening, with a year-on-year fall of 6.5% this month.
“A growing feature of UK shopper behaviour is that lower levels of footfall do not necessarily equate to lower sales figures. Greater channel choice plays a significant part in this trend; so too does the abundance of destination choices. Also, discerning consumers, at one time the preserve of upmarket brands, are today present across all price points and are proving resistant to blatant sales and marketing tactics, instead showing that they remain savvy and know how to get the best deals.
“Looking ahead, we expect retail to remain subdued as March rarely sees an upturn in shopper numbers. Whether there will be a Mothers’ Day rush is debatable, as traditional gifting can easily be bought online or alongside routine shopping trips. At the moment, we still expect that the recent increases in interest rates and continued high levels of debt will limit any real recovery in retail activity.”
