Despite the growing cost of living crisis, the gap in footfall from 2019 across UK retail destinations continued to narrow in October to -9.8%. According to Springboard data, this is the first time that the gap from 2019 has been less than -10%. “This is a positive sign in what is clearly a challenging economic environment for retailing,” said Diane Wehrle, marketing and insights director at Springboard.
However, she added that perhaps a better indication of the
challenges facing bricks-and-mortar retail is provided by examining the change
in footfall from October 2021, when all Covid restrictions had been lifted but
when consumers were still exhibiting caution in their behaviour. “In
October footfall was just +5.2% higher than in October 2021, which was just a
third of that in July when footfall was +15.6% above the 2021 lev
“The last week of October is pitched as the key week of the month as schools are on their half- term break. Footfall always increases in this week and this year was no exception, with a rise of +8% from the week before, a significant uplift from the previous three weeks when the only increase was +0.8% in the second week. However, the increase in the half term week this year was less than the rise of +11.1% in the same week in 2021, an indicator of the impact of the cost-of-living crisis on consumers’ budgets and therefore on their propensity to spend.
“Indeed, we know from the recently released ONS spending data that consumers have cut back on spending, and Springboard’s town centre sales tracker recorded a rise in spending in bricks-and-mortar stores of just +1.8% in October, which is significantly below the current rate of inflation of 10.1% indicating that consumers are buying fewer products.
“October was a nightmare month for British politics, and the uncertainty clearly had huge implications for consumer confidence which is now at an all-time low. While it appears that some political stability has been regained, the autumn statement on November 17 and the soundings about impending tax rises and spending cuts, combined with rumours about energy black-outs over the winter, will undoubtedly suppress consumer confidence and therefore footfall further.”
