7th Feb 2025 05:45
(Alliance News) - UK shopper football rose in January following a disappointing Christmas season, as buyers took advantage of extended New Year's leave and retailers extended post-Christmas discounts.
According to the British Retail Consortium-Sensormatic Footfall Monitor, total UK shopper traffic increased 6.6% on-year in January, compared to a 2.2% on-year decline in December.
The survey covered shopper traffic between December 29 and February 1.
"Despite snowy weather and Storm Eowyn causing disruption in some areas, footfall was still positive across major UK cities over the whole month," BRC Chief Executive Helen Dickinson commented.
Dickinson, however, noted headwinds to improved footfall moving forward: "Retailers want to invest more in stores and staff to enhance the shopping experience for customers and help to grow the economy, but the swathe of additional costs from April will limit investment and lead to job losses and higher prices at the tills.
"To drive growth in communities across the country, the government must ensure costs are limited in other areas. This can be done by delaying packaging taxes and ensuring that business rates reform leaves no shop paying more than they currently do."
Of total traffic, on-year high street footfall increased 4.5% in January, compared to a decline of 2.7% in December.
Retail Park footfall improved 7.9%, compared to no change in December.
Shopping Centre footfall rose 7.4% in January, compared to a decline of 3.3% in December.
Sensormatic retail consultant Andy Sumpter attributed the improvement to consumers taking additional leave around New Year's Day, as well as retailers having continued post-Christmas discounting "well into January".
Sumpter said it remains to be seen whether the bump was an aberration: "While welcome, after months of erratic and constrained footfall, the jury's out as to whether January's store performance signals the start of a sustained High Street revival or if it will be a flash in the pan come February.
"And, even if shopper traffic recovery has finally turned a corner, the challenge for retailers will be solving the next conundrum; how they balance enhanced footfall – which requires optimised store staffing to convert into sales – and the significant rises to labour costs borne out of the Budget on the one hand, with consumer appetite for discounts - a long-term margin-eroder - on the other, which will not be an easy circle to square."
By nation, footfall increased 8.5% on-year in Wales, 7.4% in England, 3.5% in Northern Ireland and 1.0% in Scotland.
By Aidan Lane, Alliance News reporter
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