Shoppers hunt for pre-Christmas bargains as retailers lure shoppers in store
Latest UK retail footfall figures show that shoppers were out in force one week ahead of Christmas Day in the search for pre-Christmas sales. However, the Retail Traffic Index figures compiled by Ipsos Retail Performance have revealed that footfall is down on the same period last year.
Ipsos says that the figures suggest that shoppers are simply holding onto their money or instead waiting for even bigger discounts from retailers after Christmas.
The figures show that after a slower November than last year, UK non-food retailers saw shopper numbers begin to increase markedly in the week commencing 25 November, two weeks later than the same period in 2011. Footfall traffic rose in the first week of December, overtaking 2011 levels but the surge was short-lived. Although footfall traffic continued to improve in the second week of December, it was 1.8% down year-on-year against 2011.
London and the South East of England has continued its weaker run this year, down 7.1% on last year in December so far. This compares to 2011 when the area was the best performing region particularly in December where it was up 13% on December 2010 against a countrywide average of 2.9%.
Never Miss a Retail Update!Commenting on this week’s figures, Peter Luff, president of Ipsos Retail Performance, said: “Following two weeks in December which were slightly stronger than predicted, retail traffic in the third week was slightly lower than our expectations putting the month to date almost exactly where we thought it would be. Interestingly, London and the South East is the only region that has been below the predicted level for all of December.
“Whether or not shoppers will continue to be out in force in the final weekend before Christmas in this region – or indeed any other region of the UK – remains to be seen. It’s an interesting scenario and somewhat of a standoff between shoppers and retailers. It could be that consumers are simply holding out for even greater discounts and bargains, or they may be holding onto their money with a view to spending immediately after Christmas or in New Year.
“For logistical reasons, the nearer we get to Christmas, the less likely it is that consumers will be buying goods online if presents they are buying are needed ahead of the big day. This is especially true of the husband who has left his shopping until the last minute and will be out buying the one gift for his wife who has worked tirelessly to make Christmas special!
“So we may see more people out on the UK’s high streets as they look to make those last minute purchases for a family member or friend. The question is – and one which they will be pondering – is whether there will be goods available as retailers have tended to keep their stock levels lower this year to avoid having excess in their warehouses.
“It’s fascinating stuff and will be interesting to see how the forthcoming week, and in particular this coming weekend, pan out.”
