‘Drab December’ caps another year of declining footfall on UK high street

Bristol: December was a tough month for UK high streets, with fewer shoppers out and about. The British Retail Consortium reported a 2.2% drop in footfall compared to last year. Shopping centers took the biggest hit, down 3.3%.

Even though foot traffic doesn’t always translate to sales, it’s still worrying for retailers. The holiday season is crucial, and these numbers don’t inspire confidence. Big names like Next are set to share their trading results soon, and it’ll be interesting to see how they fared.

Some retailers like Sainsbury’s and Tesco might have done well, but others, especially in clothing, are struggling. Brands like Quiz and Shoe Zone have already warned about profits. Food retailers like Morrisons and Asda are also facing challenges, especially with fierce competition and some crazy discounts on festive veggies.

On a brighter note, Lidl reported a 7% sales increase leading up to Christmas. But analysts say that’s partly due to them expanding their store space. Meanwhile, UK food inflation is hovering around 2%.

Helen Dickinson from the BRC summed it up well: December was drab, and it capped off a disappointing year for footfall. This marks the second consecutive year of decline. Even the usually busy holiday shopping period didn’t bring much relief.

Weather played a role too. Storm Darragh and other bad weather kept many shoppers at home, especially in the south-west and Northern Ireland. Online shopping saw a boost, with a 6.1% increase in spending, as people opted for electronics and homeware instead of heading out.

Hospitality businesses saw a slight uptick, with sales up 2.7% in mid-December, thanks to bank holidays and Christmas parties. But pubs lagged behind, only seeing 0.7% growth.

Retail expert Kien Tan believes that despite the ups and downs, Christmas shopping might still be okay overall, but there will definitely be winners and losers.

With milder weather and economic worries, people are being cautious with their spending, especially on non-essentials like clothing and big-ticket items. Black pointed out that even with rising living standards, shoppers seem to be holding back, influenced by the government’s budget narrative and the current economic climate. The state of the job market and inflation will likely shape retail trends this year.