UK retail stores and destinations saw footfall rise by +7.1 per cent from November. This was driven by a +13.2 per cent rise in shopping centre footfall followed by a +5.7 per cent rise in retail parks which is a nod to the vast array of retail and leisure options available for consumers, especially during the festive period. High streets also saw footfall rise by +4.8 per cent from the month prior suggesting many visited towns and cities across the UK to make the most of the festive events and attractions which are only in place for a limited period of time. Compared to last year, footfall rose marginally in retail parks (+1.2 per cent) and high streets (+0.3 per cent) whereas shopping centres experienced a decline of -0.1 per cent. This may be reflective of the financial pressures facing many consumers at this time of year and the increased costs that are typically associated with the winter period.
In December, trends revealed an average rise of +1.6 per cent during the early evening and nighttime across all UK retail destinations when compared to December 2023. This was strong in all destination types. For high streets, the experiential factor likely came in the form of festive markets and events contributing to the overall annual rise during this period. It also provides the convenience factor for consumers who are working during the day in the lead-up to Christmas, which retailers may have taken note of from footfall trends in previous years.
This year, Christmas Day fell midweek which provided consumers with an extra couple of days to purchase last-minute gifts and groceries. Retail stores and destinations also benefited from an additional boost on the other side of Christmas as shoppers emerged to take advantage of the Boxing Day sales and restock on groceries however this didn’t occur until 27th December. A subdued start to Boxing Day sales saw footfall decline by -4.9 per cent in all UK retail destinations in comparison to Boxing Day last year. The decline in Boxing Day activity likely reflects a shift in consumer behaviour, influenced by the ongoing cost-of-living crisis. With footfall levels +18.1 per cent higher in all UK retail destinations on Christmas Eve this year compared to Christmas Eve last year, many shoppers may well have concentrated much of their spending in a pre-Christmas rush.
Additionally, the growing presence of online shopping continues to reshape spending habits; many retailers kicked off their Boxing Day sales online on Christmas Day providing shoppers with the opportunity to grab early bargains from the comfort of their own home. This is further supported by MRI Software’s Consumer Pulse Report which identified that 53 per cent of shoppers planned to complete at least half of their Christmas shopping online; a trend which may well continue into the period between Christmas and New Year. Many key stores also remained closed on Boxing Day– John Lewis, Marks & Spencer, Next and Aldi – and many people were still visiting families.
The turn in activity came on the 27th and 28th December with shoppers emerging from their post-Christmas slumber looking to replenish their groceries and see what Boxing Day bargains are available. Over this two-day period, footfall rose by an average of +8.8 per cent compared with the same date period last year. This was driven by a +13.2 per cent uplift in high street activity suggesting shoppers were keen to make the most of the festive markets and enjoying leisure activities such as trips to the theatre and sporting events.
Retailers are bracing themselves for a challenging start to 2025 following the Autumn Budget which was revealed towards the end of October; this will bring with it financial challenges with rising costs anticipated and decisions will need to be made as to whether these costs are passed onto the consumers or absorbed by the business. This will no doubt impact retail stores and destinations in high streets, shopping centres and retail parks. Looking ahead to the next 6 months, MRI Software’s latest Consumer Pulse report revealed that 51 per cent of shoppers are concerned about the rising cost of living driven primarily by higher energy and housing costs as winter approaches. Retail leaders should bear these trends in mind as 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. Leveraging data-driven insights to drive operational efficiencies such as adapting resourcing and energy to traffic peaks and troughs will become even more business-critical.
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