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According to the monthly BRC-Sensormatic IQ Footfall Monitor UK retail footfall fell back in February after Christmas and the January sales amid concerns that shoppers are making fewer visits to the shops due to pressures on the cost of living.
Total UK footfall increased by 10.4% year on year in February from Covid-affected 2022.
However, this was 2.1 percentage points worse than January and worse than the three-month average increase of 12.8%.
High street footfall increased by 17.8% in February, which was 2.4 percentage points worse than last month’s rate and lower than the three-month average rise of 18.4%.
Retail parks saw footfall decrease 3.3% on an annual basis – although this is 0.2 percentage points better than last month’s rate and the same as the three-month average decline of 3.3%.
Shopping centre footfall increased by 11.7% in February, which was 0.7 percentage points worse than last month’s rate but marginally better than the three-month average rise of 11.3%.
Wales saw the highest increase in footfall of all nations at 14.9%, followed by Scotland at 14.5% and Northern Ireland at 12.7%. England saw the lowest increase at 11.8%.
Compared with pre-pandemic levels of 2019, total footfall was 8.8% lower, with high streets down by 7.7%, retail parks down by 2.7%, and shopping centres by 23.3%.
BRC CEO Helen Dickinson commented: “Growth in footfall slowed this month after the rush of Christmas shopping and January sales. Some people are making fewer visits as the cost of living continues to bear down ahead of the April energy price rise. Despite this, high streets continue to show the biggest improvement compared to last year, when concerns around Covid kept people away from town and city centres.
“Footfall at retail parks suffered as customers switched back to shopping centres and high streets, which are being buoyed by returns of the office commute.
“Consumer demand remains fragile, owing to the ongoing cost of living crisis and weak consumer confidence. Many retailers are investing in their store experience, and all continue to support customers with the cost of living. But it is vital that government does not burden the retail industry with additional regulatory costs that hinder investment.”
Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, added: “Facing multidirectional headwinds – from the long shadow cast by Covid to the ongoing consumer caution caused by the rising cost of living – we are, at least, starting to see footfall normalising.
“While the fluctuations in footfall are now less volatile, creating a new baseline against which to benchmark high street performance, it doesn’t mean the footfall recovery has yet fully turned a corner. Retailers are still grappling with underlying uncertainty as they try to keep pace in the context of these multifaceted challenges. Looking ahead, delivering value – whether that’s through ranging or by giving shoppers compelling reasons to visit stores – will remain central to turning the tide on footfall performance.”
Morning update
On the markets this morning, the FTSE 100 is up another 0.4% to 7,973.5pts.
Risers include Ocado, up 2.7% to 540.6p, Bakkavor, up 2.4% to 113p, and Naked Wines, up 2.3% to 104.7p.
Fallers include Science in Sport, down 9.5% to 13.8p, Pets at Home, down 0.9% to 389.1p and Hotel Chocolat, down 0.6% to 200.3p.
Yesterday in the City
The FTSE 100 closed yesterday up 0.4% to 7,944pts.
FTSE 100 consumer health player Haleon lost 4% to 313.6p after releasing its debut annual results yesterday, as investors reacted to a slightly lower than expected earnings forecast for 2023 despite solid results in 2022.
Risers yesterday including THG, up 9.4% to 65.2p, PayPoint, up 5.6% to 507p, Coca-Cola Europacific Partners, up 3% to €52.30, Just Eat Takeaway.com, up 2.5% to 1,816p and Fever-Tree, up 2.3% to 1,074p.
Fallers included Naked Wines, down 6.7% to 102.4p, WH Smith, down 1.9% to 1,554p, Science in Sport, down 1.6% to 15.25p, Hotel Chocolat, down 1.5% to 201.5p and B&M European Value Retail, down 1.4% to 484p.
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