(Commonwealth_Europe) Retail footfall across the UK indicated a notable deterioration in November 2024, with visits to physical stores plummeting by 4.5% compared to a similar period in the previous year. The timing of Black Friday, which fell outside the reporting window this year, significantly impacted this decrease, distorting the year-on-year comparison. The British Retail Consortium (BRC) and Sensormatic, which published the data, pointed out the troubling trends across various types of retail environments.
The absence of Black Friday within the November reporting period had a substantial effect on footfall figures. Unlike in 2023, where the event took place earlier in the month, Black Friday this year fell in December, outside the reporting period. This shift created an uneven comparison, amplifying the overall decline in in-store visits and exacerbating the year-over-year drop. Many retailers, who typically rely on the Black Friday rush to boost early holiday season sales, found themselves facing a significant gap in their footfall patterns, leading to weaker numbers for November.
All types of retail spaces experienced reductions in foot traffic, with the severity varying depending on the location. High streets saw a relatively moderate 3.7% decline, similar to the previous month’s figures from October. Retail parks, which had posted a 4.8% increase in foot traffic in October, faced a reversal, seeing a 1.1% drop in November. Shopping centers were hit hardest, suffering a sharp 6.1% fall in footfall, a significant worsening from the 1.6% decline recorded the previous month. This decline in shopping centers is especially concerning, given that these locations have been crucial for many retailers in recent years.
Regionally, the decline in footfall was widespread across the UK. Northern Ireland recorded a 2.8% decrease, while England experienced a 4.2% fall. Scotland saw a more substantial 6.8% reduction, and Wales faced the steepest drop, with foot traffic falling by 7.1%. Weather-related disruptions further impacted certain areas, particularly in northern cities, adding to the challenges faced by retailers.
Helen Dickinson, Chief Executive of the BRC, highlighted several factors that contributed to the weak performance. Footfall took an unacceptable dip in November, as a later-than-usual Black Friday and low customer assurance meant customers were uncertain about hitting the shops, she said. Consumers were cautious about spending due to the timing of Black Friday and broader economic uncertainty. Many shoppers delayed their holiday purchases, either waiting for better deals or shopping around for the best prices.
The economic climate also played a role in this caution. Concerns over post-budget fiscal pressures and rising inflation continued to weigh on consumer confidence. Additionally, weather disruptions in the northern parts of the UK, particularly due to Storm Bert, led to significant travel issues at the end of the month, further discouraging people from visiting stores. As a result, many retailers are now hoping that the December sales period will help recover some of the lost footfall.
Looking ahead, Dickinson also drew attention to the growing cost pressures retailers will face in 2025. With rising costs, including increases in Employer National Insurance, the National Living Wage, and new packaging taxes, the retail environment is expected to become even more challenging. These rising costs, estimated to total £7 billion, will likely limit investment in stores, high streets, and jobs, deepening the difficulties retailers face in boosting footfall and stimulating growth.
Retail not only contributes to the economy of resident areas but is vital to everyday life in societies across the country, Dickinson noted. She urged the government to take action to alleviate the impact of these rising costs, advocating for policy changes that could help the sector weather the financial pressures ahead. Without such intervention, the ongoing decline in footfall could continue, restricting retailers’ ability to invest in their stores and in the communities they serve.
Despite the disappointing November figures, Andy Sumpter, retail consultant at Sensormatic, remained cautiously optimistic. Retail store visits dropped in November as customer confidence remains unstable, perhaps not assisted by post-budget expenditure jitters, he explained. Consumers held off on early purchases, opting to wait for better discounts or to shop around for better prices, contributing to the sluggish start to the festive shopping season.
The November footfall figures do not include the crucial Black Friday weekend, which is traditionally one of the busiest shopping periods of the year. Retailers expect this delayed event to make up for lost ground. Retailers often view December as the key period for boosting sales, often referred to as the “golden quarter”. For many, it will be the last chance to recover from the slow start to the holiday season.
To turn things around, Sumpter emphasized the importance of strong merchandising and creating compelling in-store experiences that can bring customers back. This will depend not only on effective marketing and bolstered inventory accessibility but also on generating immersive knowledge that brings seasonal magic to life in-store.
As the retail sector moves into December, much will depend on the performance of the upcoming Christmas sales. Retailers will be hoping to recover from the slump seen in November and finish the year on a stronger note. However, the sector’s long-term health will depend not only on external factors such as government support and consumer sentiment but also on its ability to adapt to the evolving retail landscape.
