The UK retail industry has witnessed a slight upturn in footfall figures during the month of November, suggesting a stabilizing trend for the sector. Two different reports from MRI Software and the British Retail Consortium-Sensormatic IQ have provided varying numbers, but both indicate a positive direction for the industry.
According to MRI Software, visits to all retail destinations saw a 1% increase compared to the previous month, while remaining flat compared to the same period last year. This stability is seen as a positive sign as retailers gear up for the crucial Christmas trading period.
The data from the British Retail Consortium-Sensormatic IQ reveals that total UK footfall declined by 0.7% year-on-year in November, a significant improvement from the 5.7% decline recorded in October. The BRC attributes this improvement to a successful Black Friday week, which witnessed a 7.9% rise in footfall compared to the previous week. This offset the average decline of 1.7% in the three weeks leading up to Black Friday, which was impacted by adverse weather conditions caused by Storm Ciaran.
The report also highlights that footfall dropped for the third consecutive month in high streets, with a 1% decrease in November. This can be attributed to the adverse weather experienced in the first week of the month. However, shopping centers and retail parks experienced an increase in footfall, with a rise of 4.3% and 2% respectively.
The gap between current footfall levels and pre-pandemic levels also widened in November, with an 11.2% decrease compared to October’s 10.8%. This is mainly due to the decline in high streets and shopping centers.
MRI Software’s data reveals that high street footfall saw a 1.7% year-on-year decline in November, an improvement from the 4.6% decline in October. Retail parks witnessed a slight decrease of 1%, an improvement from the 4.3% dip in October, while shopping center visits slipped by 2.2%, an improvement from the 7.3% slump in October.
Helen Dickinson, the Chief Executive of the British Retail Consortium, pointed out the factors contributing to the improvement in footfall. She cited a slight increase in consumer confidence, easing inflationary pressures, and more predictable weather as reasons for the rise in footfall compared to the previous month. However, she expressed concern over the cost pressures faced by the retail industry and the lack of commitment from the government to freeze business rates in the recent Autumn Statement. She believes that this will have a negative impact on long-term investment and also limit any potential improvements in UK footfall.
Overall, the data signifies that while the UK retail industry still faces challenges, there are indications of stability and improvement in footfall numbers. The successful Black Friday sales and slight improvement in consumer confidence have contributed to this positive trend. However, the industry still confronts significant obstacles that must be addressed in order to support growth and investment.
Useful links:
– MRI Software
– British Retail Consortium
