Footfall took a "disappointing tumble" in November, shows recent industry data, as retailers remain hopeful that the Black Friday and Christmas sales will help to turn things around for good.
According to BRC-Sensormatic data, total UK footfall decreased by 4.5 per cent in November (YoY), down from -1.1per cent in October. High Street footfall decreased by 3.7 per cent in November (YoY), down from -3.6 per cent in October.
Retail Park footfall decreased by 1.1 per cent in November (YoY), down from +4.8 per cent in October. Shopping Centre footfall decreased by 6.1 per cent in November (YoY), down from -1.6 per cent in October.
Footfall decreased year-on-year for all four nations, with Northern Ireland falling by 2.8 per cent, England by 4.2 per cent, Scotland by 6.8 per cent, while Wales experienced the biggest decline at 7.1 per cent.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Footfall took a disappointing tumble in November, as a later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops. Some northern cities also suffered particularly badly due to Storm Bert, which caused travel disruption towards the end of the month.
"Retailers remain hopeful that the Black Friday and Christmas sales will help to turn around the declining footfall seen through most of 2024, crucial as we enter the “golden quarter”.
"Retail not only contributes to the economy of local areas but is essential to everyday life in communities across the country. New costs bearing down on retailers in 2025, including from rises in Employer National Insurance, National Living Wage, and packaging taxes, means investment in jobs, stores, and high streets will likely be curtailed.
"If the Government wishes to bolster footfall and the growth and investment that would come with it, it must help retailers mitigate the impact of the £7 billion additional costs they face from next year.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "Retail store visits dipped in November as consumer confidence remains volatile, perhaps not helped by post-Budget spending jitters and shoppers withholding festive purchases, opting instead to shop around for the best prices or hold out for further discounting.
"This lacklustre footfall performance will have come as a blow for many retailers, who would have been counting on getting early Christmas trading results under their belts before the start of advent.
"However, it’s worth noting that these figures do not include Black Friday and the Saturday of the Black Friday weekend – tipped as one of the top busiest days for store shopping during peak trading – which will hopefully jump start seasonal shopping. Now, all eyes turn to December, where retailers hope to make up for lost ground and turn around their festive fortunes.
"This will rely not only on effective merchandising and shored up inventory availability, but on building the compelling and immersive experiences that bring the seasonal magic to life in-store.”
Convenience retail continues to remain a robust sector despite rising crime and state intervention on unhealthy products, states leading property adviser Christie & Co today (16) in its annual report.
Christie & Co's report "Business Outlook 2025" reflects on key market activity, trends and challenges of 2024 and forecasts what 2025 might bring across the industries, including the convenience retail sector.
The report notes that in 2024 retail deal activity continued in the same strong vein as in H2 2023, and convenience retail remains a robust sector driven by need, providing solid investment opportunities. As such, Christie & Co's retail price index rose by 7.3 per cent.
Despite operational challenges from rising crime and state intervention on unhealthy products, there was a strong demand for opportunities.
According to Christie & Co 2024 data revealed in the report, there was a 20 per cent increase in the number of stores sold compared to 2023, with an average of ten viewings per sale.
Ever-increasing overheads will continue to present challenges for store owners and are causing the multiples to increase the turnover threshold for profitable stores.
Christie & Co notes that, as costs rise, continued divestment from corporate multiple retailers is expected and these divestments will inevitably present new opportunities for independent buyers in 2025.
The report also outlines Christie & Co's market predictions for the year ahead
Retailers will continue to face rising costs as a result of measures outlined in the Autumn Budget, and this will affect wages in particular.
This has the potential to cause inflation. However, as convenience stores are needs-driven, consumers will accept price rises or seek out value for money, states the report.
Retailers may be less inclined to hire more staff because of increasing wages and taxations, as announced in the Budget.
Due to increasing Government restrictions on unhealthy products, suppliers will have to adapt their offerings to fit requirements or sellers will have to evolve their product range, the report added.
It is unlikely that there will be a reduction in demand for sites, but purchasers will most likely factor cost increases into their offers while divestments from corporate multiple retailers are expected to continue as they continue to see costs go up and "tail end" stores may struggle, states the report.
Steve Rodell, Managing Director of Retail and Leisure at Christie & Co comments, “We are in the very fortunate position to be at the forefront of convenience retail business-to-business transactions, and we have worked very hard to become the market leaders.
"This is now a valuable position to be in, as other areas of retail, including much of the high street, struggle with internet shopping and multiple channels of competition.
"Convenience retail remains a needs-based sector, and as long as retailers listen to customers and satisfy local demand there is a good future for the convenience store.”
Cultural entropy costs retailers an estimated £10.8 billion annually, making up almost a tenth of the £122 billion lost annually across UK industries due to workplace fear, amounting to 5 per cent of the nation’s GDP, states a recent report.
According to a research by Katharine Williams, founder of Neema, in terms of economic loss, the retail sector ranks fifth, sitting below healthcare, manufacturing, real estate and construction and financial services.
The rise of e-commerce, automation in supply chains, and data-driven decision-making has transformed operational models.
This shift has increased pressure on leadership to adapt quickly, often leading to fear-based behaviours amplified by job security concerns, evolving customer expectations, and the challenge of balancing technological innovation with workforce retention, states the report.
Defined by the Barrett Values Centre, cultural entropy is a measure of unproductive and fear-based leadership behaviours such as blame, bureaucracy, and mistrust, which divert critical resources and energy away from productive activities, hampering revenue growth and impacting employee engagement across various sectors.
In terms of cultural entropy, by comparison to other sectors retail performs quite well with an entropy score of 17 per cent, sitting below sectors such as utilities and healthcare which have greater levels of fear-based behaviours.
The study finds that although good leaders don’t intentionally foster fear-based cultures, many unwittingly do. Despite over 50 per cent of UK organisations offering leadership development programmes, between 15 per cent and 22 per cent of all leadership behaviour remains fear-based.
This is because, like all humans, 90-95 per cent of a leader’s thoughts and behaviours are driven by their subconscious processing—which is often fear-based and shaped by emotional triggers, habits, and learned responses.
As a result, even highly experienced, well-intentioned leaders operate with fully deliberate, intentional thought only 5-10 per cent of the time, making them susceptible to automatic responses that may not align with either their own or the company’s values.
Williams said, “I see this as positive news for CEOs within retail. For those who have been left dissatisfied by the results of costly, time-intensive cultural interventions and leadership development programmes, there is a bright light at the end of the tunnel.
"Cultural Entropy costs will drastically reduce as leaders increase awareness of the subconscious patterns and habits that fuel fear-based leadership behaviours.
"As a coach, I use neuroscience-backed techniques, honed intuition, and rigorous diagnostics to help clients access and integrate what’s hidden in their subconscious. Integrating the subconscious with the conscious makes the invisible, visible – and what you can see you can address. At Neema, we call this ‘Integrated Leadership’.”
Two-thirds of retail leaders respondents say they will raise prices in response to increased NI costs while food inflation could hit 4.2 per cent by the end of 2025, a leading retailers' body has said citing a recent survey.
British Retail Consortium (BRC) today (15) released the findings of a survey of CFOs (Chief Financial Officers) at 52 leading retailers, revealing significant concern about trading conditions over the next 12 months.
Sentiment languished at a concerning -57 with 70 per cent of respondents “pessimistic” or “very pessimistic” about trading conditions over the coming 12 months, while just 13 per cent said they were “optimistic” or very “optimistic” (17 per cent were neither optimistic nor pessimistic).
The biggest concerns, all appearing in over 60 per cent of CFO’s “top 3 concerns for their business” were falling demand for goods and services, inflation for goods and services, and the increasing tax and regulatory burden.
When asked how they would be responding to the increases in employers’ National Insurance Contributions(NICs) (from April 2025), two-thirds stated they would raise prices (67 per cent), while around half said they would be reducing ‘number of hours/overtime’ (56 per cent), ‘head office headcount’ (52 per cent), and ‘stores headcount’ (46 per cent). Almost one third said the increased costs would lead to further automation (31 per cent).
The impact of the Budget on wider business investment was also clear, with 46 per cent of CFOs saying they would ‘reduce capital expenditure’ and 25 per cent saying they would ‘delay new store openings.’ 44 per cent of respondents expected reduced profits, which will further limit the capacity for investment.
This survey comes only a few weeks after 81 retail CEOs wrote to the Chancellor with their concerns about the economic consequences of the Budget. The letter noted that the retail industry’s costs could rise by over £7 billion in 2025 as a result of changes to employers’ NICs (£2.33 bn), National Living Wage increases (£2.73bn) and the reformed packaging levy (£2 billion).
The Budget is not the only challenge retailers are facing, with weak consumer confidence and low consumer demand also an issue. As part of the survey, CFOs offered their forecasts for the year ahead. These suggest that shop price inflation, currently at 0.5 per cent, will rise to an average of 2.2 per cent in the second half of 2025. This would be most pronounced for food, where inflation is expected to hit an average of 4.2 per cent in the second half of the year.
The forecast for sales was more muted. While sales growth is expected to improve on the 2024 level of just 0.7 per cent , at just 1.2 per cent this would still be below inflation. This means the industry could be facing a year of falling sales volumes at the same time as huge new costs resulting from the Budget.
Helen Dickinson, Chief Executive at the BRC, said, “With the Budget adding over £7bn to their bills in 2025, retailers are now facing into the difficult decisions about future investment, employment and pricing.
"As the largest private sector employer, employing many part-time and seasonal workers, the changes to the NI threshold have a disproportionate effect on both retailers and their supply chains, who together employ 5.7m people across the country.
“Retailers have worked hard to shield their customers from higher costs, but with slow market growth and margins already stretched thin, it is inevitable that consumers will bear some of the burden.
"The majority of retailers have little choice but to raise prices in response to these increased costs, and food inflation is expected to rise steadily over the year. Local communities may find themselves with sparser high streets and fewer retail jobs available. Government can still take steps to shore up retail investment and confidence.
"Business rates remain the biggest roadblock to new shops and jobs, with retailers paying over a fifth of the total rates bill. The Government must confirm the planned reforms will make a meaningful difference to retailers’ bills and that no shop will end up paying more.”
As UK and European retailers gear up for 2025, the grocery sector is poised for transformation, driven by renewed focus on fundamental retail practices, new revenue opportunities, and the growing demand for health and sustainability initiatives., highlights a new report.
A new report from IGD outlines six key trends that are set to shape the future of the grocery sector across the UK and Europe.
1. Optimising Retail Fundamentals for Success
While new technologies capture attention, UK and European retailers are reinforcing core retail fundamentals like stock availability, pricing, and promotions. Innovations like shelf-edge cameras and AI-driven stock management are improving these essential areas, ensuring a seamless shopping experience.
2. Exploring New Revenue Streams
As operating costs rise, UK retailers are diversifying their revenue sources by leveraging e-commerce technology, data monetisation, and B2B services. Tesco’s launch of Transcend, enabling other grocers to use its fulfilment tools, exemplifies the growing interest in non-traditional retail income streams.
3. Evolving Store Formats for Greater Flexibility
Retailers are adopting adaptable store designs that cater to evolving consumer needs and seasonal trends. The rise of modular store formats that feature event spaces, like FairPrice Finest in Singapore, is gaining traction in Europe, offering dynamic, customer-focused shopping experiences.
4. Seamless Connected Commerce
UK and European retailers are enhancing the integration of physical and digital retail, focusing on omnichannel experiences, loyalty programmes, and smart checkout solutions. AI-powered tools, like Target’s Store Companion, are simplifying store operations while enhancing customer engagement.
5. Health and Wellness Products Lead the Charge
Driven by growing health-conscious consumer demand, retailers in the UK and Europe are introducing more functional foods and health-focused products. The rise of initiatives like Cycle.me demonstrates a shift towards combining wellness with convenience, offering consumers greater choice in healthy, sustainable products.
6. Accelerating Sustainability Commitments
Retailers are intensifying their sustainability efforts, with a focus on reducing food waste, plastic packaging, and energy usage. Germany’s EDEKA Dorfmann sustainability store sets a new benchmark for eco-conscious retail, inspiring UK and European retailers to meet ambitious sustainability goals through innovative practices.
Stewart Samuel, Director of Retail Futures at IGD, commented, “As we move towards 2025, retailers must build on the foundation of global trends while ensuring they stay agile to rapidly evolving consumer demands.
"Focusing on the basics – stock availability, pricing, and promotions – remains critical to success. But at the same time, leveraging new revenue streams, embracing technological innovation, and championing health and sustainability are no longer optional; they are essential to staying competitive.
“Retailers who can successfully integrate these areas will not only future-proof their businesses but also build stronger relationships with increasingly conscious and demanding consumers.”
Demand for “hyper” limited-edition whisky produced by smaller, independent distilleries is on the rise with experts claiming that it is going to be the "next big thing" in the alcohol aisle.
Despite the onset of Dry January and a third of the population opting to steer clear of alcohol, whisky sales at Selfridges are defying the trend, with demand for exclusive, limited-edition bottles booming, The Times stated in a report.
The high-end department store, with flagship locations in London, Manchester, Birmingham, and a strong online presence, reports a significant uptick in interest for “hyper” limited-edition whiskies crafted by smaller, independent distilleries.
This marks a shift in the whisky market, which has traditionally been dominated by large Scottish and American producers.
According to Selfridges, sales of lesser-known brands have more than doubled over the past year, prompting the retailer to expand its whisky portfolio to over 1,000 bottles in 2023, with further growth planned for this year.
A particular focus has been on single cask releases, which yield between 200 and 300 bottles, depending on the “angels’ share”—the amount lost to evaporation during ageing.
One recent success story is The Hearach, a single malt from the Isle of Harris, whose 227-bottle single cask release sold out within an hour.
Andrew Bird, Selfridges’ head of food, attributes the surge to customers’ desire for uniqueness and exclusivity.
“We all love the idea of discovering and enjoying something that’s one-of-a-kind, that no one else has,” The Times quoted Bird as saying.
Many customers are buying these whiskies to collect, gift, or savour for special occasions.
The trend has been a boon for independent distilleries like Lochranza on the Isle of Arran. Stewart Bowman, Lochranza’s distillery manager, explained that the art of crafting whisky often involves a touch of serendipity.
“Whisky isn’t an exact science. We can fill identical barrels side by side, and they’ll come out differently. Occasionally, we stumble upon casks that are uniquely exceptional—it’s a bit of magic,” he said.
Bowman highlighted their latest limited-edition release, a 12-year-old single malt aged in a second-fill sherry hogshead cask, which boasts a “very sweet” profile with caramel and zesty orange notes.
“Limited editions represent a growing part of our business. Each one is a unique expression of what we do,” he added.
The growing appetite for rare whiskies reflects a broader consumer trend: a willingness to invest in distinctive products that could become “the next big thing.”