High Street footfall has long been one of the most accurate measurements of consumer confidence, but with the advent of online retailing this changed dramatically. Now, it is seen more as a means of determining how well attempts to rejuvenate high street trading are working – or not, as February’s results seem to indicate.
After some highly positive results in January, both sales and footfall in February have fallen steeply according to the British Retail Consortium (BRC) Springboard Footfall Monitor.
In part, the BRC believes this is due to the poor weather which plagued large swathes of the country last month, but also admits that sales both online, and in out of town retail centres, have played a role in the lack of consumers visiting the high street and shopping centres.
Across the board, footfall last month decreased by 2.9 per cent on a year on year basis, with the high street bearing the brunt of the fall with a drop of 5.3 per cent.
Footfall in shopping centres fell by 2.4 per cent meanwhile, but out of town shopping centres enjoyed a 2.3 per cent increase in the number of consumers choosing to spend their disposable income.
Retail insights director at Springboard, Diane Wehrle, concedes that last month’s footfall levels marked the worst result for the high street since March 2013 – but points out that it has been somewhat protected from the fallout by its strong performance over the last 12 months.
She says; “With a drop in footfall of 2.9 per cent, it is clear that the exceptionally rainy weather in February impacted on our retail destinations, particularly as the fall of 5.3 per cent in high streets – which are the most exposed to the elements – exceeded the 2.4 per cent fall in shopping centres that benefit from a sheltered environment.
“Despite this, however, gains early on over the last year meant that high streets are on par with shopping centres over the last 12 months with a drop of 1.9 per cent each.”
Regionally, Wales fared worse with an 8.8 per cent plunge representing the steepest ever decline in footfall since the monitor was established in December 2012. Yet all seven regions in England, along with Scotland and Northern Ireland, also reported drops in footfall, with only Greater London, East Midlands, the North and Yorkshire managing to post a footfall level below the UK average drop of 2.9 per cent.
BRC director general Helen Dickinson believes that the latest results demonstrate the importance of lowering business rates to aid small retailers.
She says; “After the increase in UK shoppers we saw last month, we have seen a disappointing, but understandable, drop back in February.
“The high street has seen the most challenging conditions, with footfall down 5.3 per cent on last year – this underlines how important it is we keep our focus on reform of business rates to keep costs down.
“Reform will help high street retailers invest in their offer and attract more people out to the shops, supporting local jobs and benefiting the wider economy.”
Do you think business rates reform will aid in increasing footfall, or do other factors play a greater role in consumers choosing alternative shopping options?
