Footfall falls in May
Published: 08 June, 2011
Experian Footfall reports slowdown in consumer traffic
May is consistently one of the year’s quieter months in the National FootFall Index, with levels typically on par with January, although this year and 2011 has experienced the lowest footfall for May over the past three years. National footfall levels are showing a month-on-month decrease of -3.9 per cent and a year-on-year fall of -1.3 per cent. In part this was anticipated given that last year retailers were heavily promoting World Cup event, offering an array of England merchandise to attract footfall in to their stores.
Consumer confidence measures continue to support the view that consumers are feeling less content; the latest Nationwide consumer confidence survey recorded another drop in index levels, reaching 43, just 4 points above February’s record low. The economy slowdown has no doubt deterred the number of shoppers visiting the high street to shop encouraging consumers to re-evaluate the amount of time during long weekends and half term spent shopping. Petrol prices remain high, which can potentially raise the awareness amongst shoppers of the discretionary nature of some of their trips.
Although, the Bank of England has decided to hold interest rates at a record low of 0.5 per cent for more than two years, speculation amongst market forecasters is that by the end of the year interest rates may rise by 0.25 per cent to 0.75 per cent. Additional pressures of relatively high inflation rates could further impact consumer’s propensity to spend as they face the reality of their disposable income being eroded, encouraging them to choose more efficient channels to shop and spending wisely. Shoppers know that the temptation to impulse buy is so much greater when in store and as more shoppers stay at home, the on-line facility allows the customer to stay in control of purchasing exactly what they need.
With two Bank holidays during the month of May, there tends to be more emphasis on outdoor garden and home products , however, the Retail Park sector has also felt the effects of consumer’s sentiment, as the sector showed a year-on-year decline of -0.4 per cent.
Although the performance of the Retail Park sector at a glance appears flat on last year, the year on year drop is disheartening for this sector when you consider that in 2010 May reported a decline of -1.1 per cent compared to May 2009, and prior to 2009 May had always experienced year on year growth.
Looking ahead, June should see uplift in visitor numbers to shopping centres, as typically the month sees an increase in the Retail FootFall Index compared to the month of May
