Before the recession, footfall on Britain’s high streets could generally be counted upon to remain high in January as retailers launched sales to make room for incoming spring and summer stock. However, thanks to changing retail habits this is no longer the case, with last month seeing overall footfall at UK retail destinations drop by 1.2 per cent year on year according to the British Retail Consortium (BRC)/Springboard Monthly Footfall Monitor.
As has been the case in recent months, shopping centres and the high street bore the brunt of the fall with footfall dips of 2.8 per cent and 1.6 per cent respectively. Retail parks, meanwhile, managed to post an increase in footfall of 1.5 per cent during the month, indicating that consumers remain eager to capitalise upon the free parking and the convenience offered by most.
Retail insights director at Springboard, Diane Wehrle, says; “The 1.2 per cent drop in footfall across the UK in January is a stark contrast to the 1.6 per cent increase in January 2014, and this contrast is heightened further by the fact that it also comes in the face of a modest increase in retail sales in January of 0.2 per cent.
“As it did so for virtually all of 2014, in January footfall continued to increase in retail parks whilst declining in both high streets and shopping centres.
“Without doubt this is due to both the challenge of the internet and the convenience of out of town locations for click and collect, as they offer plentiful, accessible parking that is free of charge.”
In part, Ms Wehrle believes that the drop in footfall on the high street is due to the number of unoccupied shops, which rose slightly to 10.4 per cent nationwide in January.
Furthermore, she warns that this trend may continue as the year progresses, as a number of major brands will reach the expiration date on their leases in the coming months and may choose not to renew due to promotional activity squeezing profit margins.
This, the BRC believes, will benefit online retailers able to capitalise upon a dwindling retail offer on the high street and in shopping centres, making internet shopping an even more attractive prospect for busy consumers. The only way to solve this problem, it argues, is for the government to commit to its pledge to review the business rates system as well as encouraging local authorities to implement initiatives designed to draw consumers back to their local shopping hubs.
Director General of the BRC, Helen Dickinson, says; “Rising numbers of vacant shop units are still a cause for concern.
“We have welcomed the government’s pledge to review business rates on our recommendation, however in order to make a real difference the review will need to be wide in scope and seek radical solutions.
“Spreading best practice – such as supporting pop up shops, increasing digital connectivity and focusing on general town centre improvement – is crucial if we are to drive down a vacancy rate that remains stubbornly above 10 per cent.”
