UK retailers facing December disappointment as rain subdues store visits
ONE of the wettest Decembers on record could have hit UK retailers as fewer shoppers visited stores in the run-up to Christmas.
The number of people going to shops, retail parks and malls fell 5 per cent in the last five weeks of 2023, compared with the same period in 2022, according to the latest footfall data from the British Retail Consortium and Sensormatic IQ.
It is a substantial decline during the most important shopping period for British retailers, which were already contending with subdued consumer sentiment during the national cost-of-living crisis.
Shopping locations in England and Wales were the worst affected with footfall falling 5.8 per cent on average in both countries. Scotland fared slightly better with the number of visitors to bricks-and-mortar stores only falling by 2.2 per cent.
“December’s heavy rain left many shoppers reluctant to brave the elements,” said Helen Dickinson, chief executive officer of the British Retail Consortium.
The drop in footfall is in contrast to the spike in store visits that happened a year earlier when strikes by postal workers and courier disruption made online shopping less reliable for consumers, pushing them to shop in person.
“This time last year people were deterred from shopping online because of service issues and this year they weren’t,” said Simon Wolfson, CEO of Next.
Next raised its pretax profit guidance this week after sales were stronger than expected in the approach to Christmas. The home and clothing retailer saw online sales growth far outpace stores with a 9.1 per cent increase versus 0.6 per cent for bricks-and-mortar retail.
However, the verdict on the holiday season for retailers is still uncertain as the earnings reports roll in. While Next upgraded its profit guidance JD Sports Fashion cut its profit forecast, blaming cautious consumer spending and high rainfall. BLOOMBERG
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