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Omicron slams retail recovery as footfall slips back

Omicron shadows December retail sales
Members of the public, some wearing face coverings to help combat the spread of Covid-19, walk along a shopping street off of Oxford Street in London on December 21, 2021. (Photo by Tolga Akmen / AFP) via Getty Images)
AFP via Getty Images

Restrictions imposed in the wake of the Omicron coronavirus variant have "wiped out" much of a recent recovery enjoyed by UK bricks-and-mortar stores, the British Retail Consortium (BRC) revealed Friday.

Much of the progress made in late 2021 "was wiped out in December as surging Omicron cases and new work-from-home advice deterred many from shopping in-store, particularly in towns and city centres", noted BRC chief executive Helen Dickinson.


"Nevertheless, while UK footfall saw a moderate decline compared to previous months, it remained above levels of other major European economies, as the country avoided some of the more severe restrictions implemented elsewhere," she added in a statement.

The number of shoppers visiting UK stores slid 18.6 percent in December compared with two years earlier, or before the onset of the coronavirus pandemic, according to the BRC-Sensormatic IQ Footfall Monitor.

"December footfall capped a challenging year for brick-and-mortar stores, which saw footfall down one-third on pre-pandemic levels," Dickinson added.

The UK, already among the worst hit countries in Europe by the pandemic with a virus death toll of nearly 150,000, has seen a fresh surge in cases owing to the arrival of the Omicron variant in late November.

Despite the unprecedented numbers, Prime Minister Boris Johnson has opted not to introduce tougher restrictions in England, arguing the rising levels of hospitalisations and serious illness do not yet require more measures.

But other UK regions have tightened rules, with devolved governments in Edinburgh, Cardiff and Belfast all rolling out post-Christmas curbs on socialising and large events.

“While there weren’t any formal government restrictions, aside from the Plan B mask-wearing mandate, placed on retailers in December, concerns about the rapid spread of Omicron dealt a blow to shopper confidence, as consumers self-policed social contacts and limited shopping trips in a bid to save their own Christmases,” Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, commented.

“But this will have done little to save the Christmases of retail businesses, effectively stalling the high street’s recovery in the run up to their most important trading period, with shopper counts across all retail settings receding to the levels seen in August, wiping away the slow but steady footfall recovery and gains we had seen up until the start of November.”

Footfall on high streets declined by 23.1 per cent in December (Yo2Y), and retail parks saw footfall decrease by 9.2 per cent. Shopping centre footfall was the most affected, declining by 36.6 per cent.

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