UK retailers suffered a disappointing end to the second quarter of 2015, with footfall figures dropping in June by 0.8% compared to the same month in 2014.
Ipsos Retail Performance, the global retail and footfall consultant compiles the Retail Traffic Index (RTI), which is derived from the number of individual shoppers entering over 4,000 non-food retail stores across the UK.
The expected seasonal uplift in weekly shopper numbers failed to materialise, with an increase of just 3.8% on May, almost half the normal figure of 7.0%. Quarter 2 as a whole experienced a marginal rise of 0.1% on last year, well below the 2.7% increase seen in Quarter 1.
The fall in the retail traffic index was most apparent in South West England and Wales, where the year-on-year comparison swung from a 2.9% rise in Quarter 1, to a fall of 4.0% in Quarter 2. The North of England continued to lead the store footfall recovery, posting the strongest footfall figures for the month, albeit with the region’s weakest result since January.
“Just when it seemed retailers were building solid momentum, this bump in the road, shows just how volatile the sector is,” commented Dr Tim Denison, director of retail intelligence at Ipsos Retail Performance.
“Right across the board we are seeing positive sentiment and strong growth indicators in the UK economy. GDP is projected to be stronger in Quarter 2 than Quarter 1, real wages are growing at their fastest level since 2007 and 425,000 jobs have been created in the last 12 months. Yet the footfall data suggests that non-food retailing is struggling to achieve its expected share of consumer’s disposable income.
“The first fortnight of the summer sales have failed to deliver a year-on-year boost in store footfall, signifying that shoppers are becoming desensitised to full-blown sales, conscious that bargains are there to be had all the year round nowadays.”
The disappointing figures for Quarter 2 dragged down footfall growth in the UK to +1.3% for the first half of the year.
Dr Tim Denison continued:
”With the economy seemingly set to continue to improve throughout the year, there is plenty of opportunity in Quarter 3. Retailers will need to continue to be on their mettle in the coming months to win their share of wallet and make consistent progress during the upturn. This will require high energy, more constant engagement and retail experiences that stimulate and excite shoppers.”
Footfall change: June 2015 vs June 2014
Scotland & Northern Ireland -4.3%
North of England +3.3%
The Midlands -0.3%
South West England & Wales -2.6%
South East England & London -2.7%
Footfall change: June 2015 vs May 2015
Scotland & Northern Ireland +5.5%
North of England +3.7%
The Midlands +2.3%
South West England & Wales +1.2%
South East England & London +6.1%
Footfall change: Q2 2015 vs Q2 2014
Scotland & Northern Ireland -0.3%
North of England +5.4%
The Midlands +0.7%
South West England & Wales -4.0%
South East England & London -2.8%
Footfall change: H1 2015 vs H1 2014
Scotland & Northern Ireland +2.3%
North of England +5.3%
The Midlands +1.4%
South West England & Wales -0.8%
South East England & London -1.6%
