UK shoppers show cautious optimism
SPSL Retail Traffic Index sees signs of recovery
June 6 2003
Retail traffic has continued to fall year-on-year, down by 1.7 per cent in May, according to the latest Retail Traffic figures to be released by SPSL.
However, the fall was not to the extent feared and SPSL believes that there are other, more positive, straws in the wind.
Dr Tim Denison, director of knowledge management at SPSL, said: “Though this is now the fourth month that we have seen the RTI fall, the three month trend has bottomed out which shows that shoppers are beginning to feel venturesome again after a period of cautiousness since last December.”
The late May Bank Holiday weekend strengthened the month’s overall performance. The week commencing May 25 saw retail traffic three per cent higher than 2002, though last year the holiday was held over until the Queen’s Golden Jubilee celebrations, a week later.
Denison said: “We are beginning to see divergent trends emerging amongst the different retail destinations. Shopper numbers in town centres and on high streets were still down quite markedly in May – down 2.7 per cent. Compare this to a 2.2 per cent rise in numbers visiting out of town destinations and retail parks.
“Consumers showed signs of discretion last month as to where they are focussing their shopping efforts and how they are spending their money. They feel happy contemplating shopping on the home improvement front, where there’s a perception of adding value, but are less certain on other, perhaps more frivolous, purchases.
Denison said: “It is too early to say that this is the start of the British summer for retailers, but certainly there are signs that the dark clouds are lifting.
“The upturn if sustained will, however, not be as strong as we saw last year, as consumers are now waking up to the possible consequences of their debt burden in light of the exposed frailty of the economy.”
