Despite some improvement, retail footfall in the UK is not expected to reach pre-pandemic levels for quite some time, according to retail experts Springboard. Their annual review indicates that footfall is projected to settle at a gap of -5% to -10% compared to 2019 levels, indicating a long-term trend resulting from the pandemic’s impact on consumer behavior and the retail industry.
Springboard’s report highlights five key findings about retail footfall in 2022. Firstly, the gap with pre-pandemic footfall remained significant, displaying a -14.2% decrease compared to 2019 across the January-December period. This signifies that the retail industry still has a long road to full recovery from the disruptions caused by the pandemic.
Consumer localism was identified as one factor that hindered retail recovery in Central London. Footfall in the city center was 17.8% lower than 2019 figures between May and December. However, several retailers, such as Primark, have reported that city center footfall is beginning to recover, offering hope for the revitalization of urban retail areas.
The rise of hybrid working also contributed to the decline in footfall, with weekday footfall on high streets remaining 18.2% below 2019 levels in 2022. Springboard’s quarterly Retail Consumer Survey found that 55% of consumers were working from home for at least some days each week throughout the year, indicating that the extent of remote working did not drastically change.
Furthermore, online spending decreased in 2022, with the share of online spending on clothes and footwear dropping from a pandemic peak of 65% to just 24.9% in December. This shift in consumer behavior can have both positive and negative effects on physical store footfall. While some shoppers may be more inclined to visit physical stores, others may be less likely to pick up online orders in-store.
In contrast, retail parks demonstrated greater resilience during the pandemic, benefiting from rail strikes and changing spending patterns. Footfall in this sector was only 3.7% below 2019 levels in 2022, indicating that retail parks successfully adapted to the challenges posed by the pandemic and attracted customers.
Overall, 2022 marked the first full year of “normal” retail trading conditions since the start of the pandemic in March 2020. The footfall recovery over the year aligned with Springboard’s forecast of a gap of -10% to -15% from 2019 levels. From January to December, footfall across UK retail destinations improved from -20.8% to -10.9%.
In conclusion, although there was some improvement in retail footfall in 2022, it is evident that the pandemic’s impact will continue to shape consumer behavior and the retail industry for the foreseeable future. Retailers must consider the long-term trend of the gap between current footfall levels and pre-pandemic levels as they plan for the future.
