Footfall increased in January as shoppers head to stores: BRC

Shopper footfall received a welcome boost as many consumers hit the January sales in their local community, shows recent data, bringing a welcome news for high streets following a particularly difficult Golden Quarter to end 2024.

According to BRC-Sensormatic data released today (7), total UK footfall increased by 6.6 per cent in January (YoY), up from -2.2 per cent in December.

High Street footfall increased by 4.5 per cent in January (YoY), up from -2.7 per cent in December while retail park footfall increased by 7.9 per cent in January (YoY).

Shopping Centre footfall increased by 7.4 per cent in January (YoY), up from -3.3 per cent in December.

Footfall increased year-on-year in all four UK nations, with Wales improving by 8.5 per cent, England by 7.4 per cent, Northern Ireland by 3.5 per cent, while Scotland improved by 1.0 per cent.

Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Shopper footfall received a welcome boost in January following a disappointing festive period.

"Store visits increased substantially in the first week of the month as many consumers hit the January sales in their local community, with shopping centres faring particularly well.

"Despite snowy weather and Storm Eowyn causing disruption in some areas, footfall was still positive across major UK cities over the whole month.

"Improved shopper traffic is welcome news for high streets following a particularly difficult ‘Golden Quarter’ to end 2024, and low consumer sentiment to start the year.

"Retailers want to invest more in stores and staff to enhance the shopping experience for customers and help to grow the economy, but the swathe of additional costs from April will limit investment and lead to job losses and higher prices at the tills. To drive growth in communities across the country, the government must ensure costs are limited in other areas.

"This can be done by delaying packaging taxes and ensuring that business rates reform leaves no shop paying more than they currently do."

Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "After a dreary December, retailers will welcome January’s footfall jump.

"The uptick was boosted by a very strong Week 1, helped in part by New Year’s Day falling on a Wednesday, which may have prompted ambient store traffic as consumers bolted on additional days of leave, as well as retailers extending post-Christmas discounting well into January.

"Not even the significant disruption from Storm Eowyn was enough to dampen overall footfall performance. While welcome, after months of erratic and constrained footfall, the jury’s out as to whether January’s store performance signals the start of a sustained High Street revival or if it will be a flash in the pan come February.

"And, even if shopper traffic recovery has finally turned a corner, the challenge for retailers will be solving the next conundrum; how they balance enhanced footfall – which requires optimised store staffing to convert into sales – and the significant rises to labour costs borne out of the Budget on the one hand, with consumer appetite for discounts - a long-term margin-eroder - on the other, which will not be an easy circle to square."

Another report released on Thursday (6) stated that high streets need to optimise for midweek office workers as Brits return to office.

According to the latest data from retail tech specialist MRI Software, retail footfall bucked seasonal trends in January, rising +1.4 per cent year on year across all UK retail destinations.

This marks the first annual increase in January footfall since 2016 (+1.2 per cent), outside of the pandemic period, suggesting that a stronger return to office work is driving retail visits as businesses push employees back to in-person work.