UK January footfall holds up despite weather, economy issues

Despite battling adverse weather and uncertainty over household finances, UK consumers are proving to be slightly resilient, if not exactly in a ‘let’s spend like crazy’ mood.

In fact, footfall across all retail destinations dropped in January compared to a year ago, according to the latest monthly insights from MRI Software. But the fall was only 0.8%, which is perhaps good news.

The anticipated dip was mainly driven by a 1.4% drop in high street footfall.

But the delayed return to offices and schools while the Christmas holiday continued in the first week of January benefitted mainly retail parks. There, footfall rose by 2% week on week compared with declines in high streets (-0.8%) and shopping centres (-6.5%), likely influenced by the weather and travel disruptions across the UK.

It remains to be seen whether the footfall will translate into good sales figures, although retailers seem to be rather downbeat on that front.

And MRI Software is downbeat about February’s prospects. Jenni Matthews, Marketing & Insights Director at the firm said: “While the post-Christmas slump is evident in January’s footfall figures, the retail sector and businesses reliant on visitors travelling in by train are set to face challenges in the first half of February due to an unprecedented number of planned rail strikes.

“However, optimism prevails with half term approaching as this historically tends to deliver a much-needed surge in footfall following the festive period. Furthermore, with Easter break – the second biggest trading period for retail outside of Christmas – also in close proximity this year, it could serve as a benevolent boost for retail in the first quarter of 2024.”