UK retailers received positive news after a difficult year, as footfall in December exceeded expectations. Compared to November, footfall increased by 5.8% and compared to the same period last year, it was up by 9.9%. This also helped to narrow the gap between footfall levels in 2022 and 2019.
While high street footfall only saw a modest increase of 1.6% in December, shopping centres experienced a significant increase of 13.1% and retail parks saw a rise of 7.2%. Although these figures were slightly lower than initially forecasted, they still demonstrated resilience in the face of challenging circumstances.
The rail strikes that occurred in the week before Christmas had a noticeable impact on footfall. In the first week of December, the gap between footfall levels in 2022 and 2019 was 11%, but it more than doubled to 20.1% in the week before Christmas. However, the overall impact of the strikes on December’s footfall was minimal. The 5.8% increase from November was in line with Springboard’s forecast of 6% made at the beginning of the fourth quarter.
The data company behind the report, Springboard, suggested that consumers were drawn to physical retail due to concerns about delivery disruptions caused by postal strikes. The convenience of being able to reach shopping centres and retail parks by car also played a role in diverting shoppers away from high streets.
Despite the positive outcome for retail destinations in December, there are concerns about the strain on household budgets caused by the cost-of-living crisis. This is expected to have an impact on retail in January and the first quarter of 2023. Retailers should anticipate a decrease in footfall of around 20% in January compared to December. Additionally, planned rail strikes in the first week of January are likely to further divert shopping trips away from high streets towards retail parks and shopping centres.
Overall, the strong performance in December provides some much-needed optimism for the retail sector. However, the challenges posed by the cost-of-living crisis and ongoing strikes highlight the importance of retailers being prepared for a potentially challenging start to 2023.
Useful links:
– Retail Gazette
– BBC Business
