Shoppers remain elusive
The latest figures from SPSL’s Retail Traffic Index show that shopper numbers were down again in August, by -0.7 per cent year-on-year and -0.9 per cent month-on-month.
Dr Tim Denison at SPSL said ; “Despite the ongoing pain, in some respects the August figures will come as a relief to retailers. They represent a significant improvement on July’s comparisons, which were the worst since 2001. They also indicate that the downturn in retail footfall, present since last November, has now stabilised at around 1% below last year and is not continuing to worsen.
“However, it must be said that retailers’ tactics have helped. Extensions to the summer Sales, normally well over by now, have played a part in boosting August’s shopper numbers. The fact remains though that, despite their best efforts, the RTI is still down on last year and there is nothing to suggest that things will turn around this side of Christmas, which will provide little comfort for those retailers who are running out of ideas. No doubt, also, the current impasse on Chinese textiles will not have helped the fashion stores.
“Last month’s drop in interest rates certainly won’t have been sufficient to kick start shopping again. Consumers have put on the brakes this year, partly on the back of less discretionary spending ability. The current surge in petrol prices is the latest cost rise to hit their pockets and many would rather drive than wear new clothes or have yet another electronic gizmo such as I-Pod or PSP.”
Around the country it was London and the south east region that fared the worst in August. There, shopper numbers were down -5.1% year-on-year, over 2% worse than for any other region. Retail in the capital’s congestion zone itself continued to suffer badly in the wake of the July bombings with weekly shopper numbers still fluctuating between -10 and -15% down on last year. It remains to be seen if the events organised to encourage people back into the city in September will help repair the economic damage.
