Retail industry is expected to have a muted end to the Christmas shopping period as poor weather and strikes are pulling down consumers’ spending which is already under pressure from the increased cost of living.
According to analysts at Springboard, number of shoppers at retail destinations across the UK to rise by 4.5 per cent in high streets, 5 per cent in retail parks and 10 per cent in shopping centres in December compared with November. However, those footfall increases would be smaller than previous years.
Lower sales were expected in the lead-up to Christmas. Office for National Statistics last week showed that the amount spent on retail in Great Britain dropped by 0.4 per cent in November, against a forecast of a 0.3 per cent rise by industry analysts.
Cold snap and a series of rail strikes in Great Britain last week further hampered the footfall in the last week, which otherwise should have been a peak trading week for retail destinations and stores, with footfall expected to rise from the week before as Christmas shopping moves towards its zenith. Instead, footfall across UK retail destinations took a tumble last week. Pre-Christmas footfall plummeted 10.2 percent according to the latest figures from Springboard, and down 20.1 percent compared to 2019. Despite it usually being a peak trading week for retailers pre-Christmas, a sharp decline in visitors and shoppers was inevitable.
There are further strikes planned, including one by Network Rail staff starting at 6pm on Christmas Eve.
Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, a consultancy, said the November sales decline came as “consumers tightened their belts in the face of surging prices”.
“We expect further weakness ahead due to the snow and a further hit to real incomes,” The Guardian quoted Tombs as saying with higher energy costs an important factor in reducing households’ disposable incomes.
