8 August 2012
The latest results from the Retail Traffic Index (RTI), which monitors the
volume of shoppers in non-food stores across the UK, continued to record
disappointing national footfall levels in July with a 5.2 per cent year on
year decline (vs July 2011).
Although footfall remains very fragile on Britain’s high streets, in the
past two months signs have been slightly more encouraging. A strong end to
June, brought about by the launch of the summer sales, carried on into the
first fortnight of July. The RTI, compiled by Ipsos Retail Performance,
shows that footfall for the month as a whole ended 5.3% stronger over June.
Dr Tim Denison, Head of Retail Intelligence at Ipsos Retail Performance,
says: “The summer sales helped to keep some momentum going after the Jubilee
week in June, underlining the belief that consumers are prepared to go
shopping when they have good occasion to do so. Although the summer months
are less critical than some others for the retail sector, another improved
shopping month in August would help give retailers hope and some grounds to
believe that the next important month in the calendar - back-to-school
September - will also be better.”
Despite no reported improvement in consumer confidence, as shown in the
Ipsos-MORI’s Economic Optimism Index that flatlined in July, special events
are playing an important part in nudging footfall upwards.
“We are not yet seeing any sustained uplift in the underlying trend when
these special occasions are excluded, so we can be thankful for this summer
of events,” says Denison. “There is much conjecture about the likely impact
of the Games on retail sales and footfall. In truth it is too early to tell,
but we can hope that they energise shoppers and build further momentum.”
Meanwhile, the Office for National Statistics sales data for June showed
that big ticket items were back on the household shopping list; and Ernst &
Young ITEM Club has forecast that real disposable income will rise by 1.5
per cent in quarter four of this year.
“We are at last beginning to hear some good news stories in retailing,” says
Denison. “These are the sorts of nuggets that help foster a belief that the
end of the decline may be not too far down the track.”
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