In the face of ongoing economic uncertainties, November’s UK retail footfall reports provide a cautiously optimistic outlook, suggesting a potential stabilization in the sector. With insights from both MRI Software and the British Retail Consortium-Sensormatic IQ, the data reveals a nuanced picture of the retail landscape.
MRI Software’s findings show a 1% month-on-month increase in visits to all retail destinations, maintaining a steady year-on-year trajectory. This positive trend is seen as a strategic move by retailers as they gear up for the pivotal Christmas trading month.
The British Retail Consortium-Sensormatic IQ data indicates a 0.7% year-on-year decline in total UK footfall for November, marking a noteworthy improvement from October’s 5.7% dip. The report attributes this positive shift to a robust Black Friday week, witnessing a 7.9% week-on-week rise over seven days. This surge compensates for a modest average decline of 1.7% in the preceding three weeks, influenced by adverse weather conditions, notably Storm Ciaran at the month’s onset.
Breaking down the data by location, high street footfall experienced a 1% decline, largely attributed to adverse weather conditions. In contrast, shopping center and retail park footfall saw increases of 4.3% and 2%, respectively.
Despite these positive indicators, the gap from pre-pandemic footfall levels widened to -11.2% in November, compared to -10.8% in October. This divergence is primarily attributed to deteriorating performance in high streets and shopping centers.
Further analysis from MRI Software reveals a 1.7% year-on-year slip in high street footfall, an improvement from October’s 4.6% decline. Retail parks saw a 1% decrease, recovering from October’s 4.3% dip, while shopping center visits decreased by 2.2%, a positive shift from October’s 7.3% slide.
Helen Dickinson, Chief Executive of the British Retail Consortium, highlighted, “A slight uptick in consumer confidence, coupled with easing inflationary pressures and more predictable weather, contributed to improved footfall. The Black Friday sales provided a much-needed boost, encouraging shoppers to visit town and city centers after a slow start in October.»
However, Dickinson expressed concerns about extensive cost pressures on the retail industry, citing the Chancellor’s failure to commit to a business rates freeze in the recent Autumn Statement. This decision, she warned, could result in significant additional costs, potentially impacting the decline in inflation, limiting long-term investment, and constraining the potential upside from improvements in UK footfall.
