The latest Retail FootFall Index (RFI) figures from FootFall back up what many had already suspected - that Christmas 2006 was a disappointment for the retail sector. Although the RFI recorded a healthy 20.7 per cent increase in shopper numbers from November to December, this did little to improve the overall drop in footfall levels compared to 2005. This gap has been steadily widening throughout the year.
Natasha Burton, spokesperson for FootFall, commented: "A dramatic increase in online shopping has had a sustained effect on the retail sector this year."
Martin Davies, director of Experian's Business Strategies division, added: "Last year will be characterised as a watershed in terms of a shift in Christmas shopping habits, with a realisation that both multi-channel and multi-location shopping patterns are here to stay. With footfall levels down on previous years, customer service and marketing will be high on the agenda for many in 2007. However, headline figures mask key retailers and shopping centres that have had a successful season by better understanding the shopping habits of increasingly sophisticated consumers.
"As they get accustomed to buying online or at any time of day or night at a supermarket, they'll be visiting centres for different purposes. This year will see the trend of visits to true destination centres continue, as shopping for many becomes a family pastime rather than a chore.
"The pre-results forecasters are already talking about winners and losers this Christmas, and the internet is proclaimed as this year's winner. However, the true winner must be the consumer, whose influence on Christmas 2007 is dominating the minds of UK retailers before this year's decorations are even returned to the loft."
Retail Footfall Index UK - Dec 2006
Month-on-month (December 2006 v November 2006) UP +20.7%
Year-on-year (December 2006 v December 2005) DOWN -7.6%
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