Shoppers return for sale bargains
Retail Traffic Index running ahead of 2002
February 4 2003
The first Retail Traffic Index of 2003 shows that retail traffic up 0.8 per cent in January compared to the same month in 2002.
The index, compiled by SPSL, confirms that shoppers came out for the January sales despite slower trading in the run-up to Christmas.
Dr Tim Denison, director of knowledge management at SPSL said: “This news completes the picture for Christmas and the New Year. Though Christmas trading was slightly disappointing generally, with retail traffic down 2.7 per cent year-on-year in December, shoppers were out in force again in January, particularly at the beginning of the month. It confirms our viewpoint that consumers are still enjoying spending, but are feeling constrained, happier to do so on Sales bargains than full-price goods.”
London and the South East, where retail traffic fell by 2.1 per cent year-on-year in January, saw traffic hit by bad weather which hindered shoppers. This makes it unclear whether there are more deep rooted reasons for a slowdown, according to SPSL.
Denison said: “The general uplift, though very welcome for retailers, was expected in some quarters and it is how shoppers behave from here on that is really going to set the trends for the year ahead. February will be a decisive month and one that will be difficult to call, particularly in light of the fear of war in Iraq.
“If nothing else, last year should have taught analysts how deep-seated the consumer’s need to shop can be. Whilst nobody can assume that consumer spending will be able to sustain the economy for another 12 months to the extent it did last year, commentators are less likely to allow knee-jerk reactions to adverse news to colour their opinions.”
