Footfall Monitor: Footfall slips back in September
06 October 20232 Minute Read
Asim DeyAnalyst | BRC
Kris Hamer PhDDirector of Insight | BRC
Report Excerpt
Helen Dickinson OBE | Chief Executive | British Retail Consortium
During the warmer-than-expected weather, footfall slowed in September, with fewer shoppers across all shopping locations. High streets and retail parks held up slightly better as the return to school helped increase the number of shopping visits at the start of the month. Retailers will want to invest in their properties in the run up to Christmas, but the prospect of a £400m increase to business rates next year will limit their capacity for improvements. The Chancellor should announce a freeze to rates at the Autumn Budget in November.
Andy Sumpter | Retail Consultant – EMEA | Sensormatic Solutions
“Rather than the traditional ‘Back To School’ boost to shopper traffic we would normally expect to see in September, footfall remained subdued as consumer caution on discretionary spending stayed high, perhaps prompted by shoppers withholding spend to save ahead of the Golden Quarter and Christmas. While retailers will be hoping this month’s first fall in food prices in two years will mark the beginning of the end of inflationary-driven pressure on household budgets, many will recognise that the reality of inflationary-driven interest rates – and consequently higher mortgages and rent payments - will be with us ‘higher and for longer’, meaning once again retailers will be required to run faster just to stand still.”
Overview
Retail footfall in 2023 has exhibited a fluctuating pattern, starting positively in January and February but gradually declining from March to April. May brought a significant shift with a sharp decrease, due to rising inflation and consumer expectations of price hikes. Footfall remained relatively stable with minor fluctuations from June to August, and July saw a minor recovery due to summer sales. However, August and September both witnessed declines, highlighting persistent economic challenges and consumer prudence in spending.