Retailers get festive boost as more people head to shops
There was an increase in the number of people who headed to the shops in December amid fears retailers face uncertain times after the festive season, analysts say.
The 7.1 per cent increase in footfall in December from November is the greatest month-on-month rise since an 8.7 per cent jump was recorded in the same period in 2019, according to retail analysts MRI Software.
People were spending at a range of destinations which meant there was a 13.2 per cent boost in shopping centre footfall, a 5.7 per cent rise in retail parks and a 4.8 per cent increase on the high streets compared to the previous month.
MRI Software’s marketing and insights director Jenni Matthews warned that “the surge in festive footfall may well be the last big splurge for many consumers ahead of what could be a spending freeze heading into early 2025”.
Shoppers may have been lured to retail parks, which offer an array of stores and leisure activities, and to high streets that offer festive events and attractions as these destinations have “diversified since the pandemic to accommodate evolving consumer needs”, according to Ms Matthews.
She said: “Retail parks and shopping centres have invested in more leisure and hospitality amenities to provide consumers with that experiential element, and one which caters for the entire family.
“High streets have continued to invest in festive markets and events to attract visitors during a period when the weather can be temperamental and travel disruptions are frequent which can sometimes deter people from towns and cities.”
The evening and night time were popular periods across all UK retail destinations, as there was an average 1.6 per cent rise in footfall recorded.
The “strong” December figures come as retailers are bracing for a challenging start to 2025, with decisions to be made about whether rising costs are passed on to the consumers or can be absorbed.
Ms Matthews described the marginally higher footfall, compared to the same period in 2023, as “encouraging but also shows signs that consumers are remaining cautious when it comes to spending”.
She added: “As the winter period progresses, many will be hit with higher energy bills and overall housing costs which may well impact spending on non-essentials.
“However, with strong footfall performance recorded periodically throughout the month – namely Christmas Eve and the days following Boxing Day – this may indicate shoppers were keen to make additional savings by taking advantage of some of the early in-store sales as well as the Boxing Day sales in the last few days.”
By Helen William, PA