High street footfall rebounds after fifteen-month decline
By Oliver Haill
Date: Monday 15 Apr 2019
(Sharecast News) - Shopper numbers last month increased strongly compared to last year, though the difference was mostly put down to the vastly different weather.
Ahead of this weekend's important Easter weekend, footfall increased 1.4% in March, according to the BRC-Springboard monthly high street report, though numbers benefitted from comparison to the previous year when the 'beast from the east' weather system chased numbers down 6%.
For the three months to the end of March, footfall was down 0.3% compared to the same period last year, but this was an improvement on the 1.8% figure a month earlier.
March's high street footfall increased 2.5%, made easier as it was against a decline of 8.6% a year before, but following fifteen months of consecutive decline for the high street with 2019 seeing the weakest February in five years.
Shopping centres remained under pressure, with footfall down 1.0%, against a decline of 4.8% a year before and now the 24th month of consecutive decline.
Retail park footfall increased by 1.5%, versus a fall of 1.8% the year before.
Helen Dickinson, chief executive of the British Retail Consortium, said the figures were "heavily influenced" by the weather as this March has been mild by comparison to last year.
"Unfortunately, the higher footfall has not translated into higher spending," she said.
Also noting that shopping centres continue to suffer, Dickinson added: "It is vital that all different shopping locations are fit for the future, offering the mix of retail and experience-led opportunities that generate the necessary footfall to succeed. Furthermore, Government can support this transformation by reforming the outdated business system which holds back firms from investing in physical space. "
Springboard director Diane Wehrle said that the data indicates that "we continue to be in the midst of a no-splurge culture; with consumer confidence continuing to languish, shoppers are clearly focussed on prudence".
Russ Mould, investment director at AJ Bell, said the big takeaway from the BRC figures was the fact that higher footfall hasn't translated into higher spending. "This implies that many consumers are still being cautious about splashing the cash.
"It doesn't seem the case that spending is simply shifting online. A report last week from Mintel discussed a slowdown in online grocery shopping and online fashion seller ASOS recently said its sales weren't growing as fast as it had hoped."
He said the key test for the retail sector will be April's performance as the Brexit deadline has been pushed back, which may encourage consumers to make larger purchases they have previously been holding off pending the Brexit outcome.
"The weather forecast is also good for the long Easter weekend with decent temperatures and lots of sun - this should get people out and about. While that could result in a short-term boost to retail trading, one can assume that conditions could remain tough for the sector as the year progresses unless there is a radical breakthrough with how Brexit will play out and cost pressures ease."
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