UK Retail Resilience Despite Challenges in January
In January, UK retail demonstrated resilience despite facing challenges such as adverse weather conditions, uncertainties around household finances, and rail strikes. The overall footfall in the UK experienced a modest drop of 0.8% year-on-year, reflecting a stable performance amid various factors influencing consumer behavior.
The month-on-month footfall decline of 20.1% compared to December 2023 was in line with the traditional post-Christmas dip, which has been consistent at an average of -22.9% since 2009, according to data from retail analysts MRI Software.
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Inflationary pressures and the cost-of-living crisis remain key concerns, contributing to a higher month-on-month drop in footfall compared to January 2023. The delayed return to offices and schools in the first week of January benefited retail parks, which saw a 2% week-on-week increase in footfall.
In contrast, high streets experienced a slight decline of 0.8%, and shopping centers faced a more significant drop of 6.5%, likely influenced by weather-related and travel disruptions across the UK.
Jenni Matthews, Marketing & Insights Director at MRI Software, highlighted the resilience of UK high streets despite weather challenges.
She noted that while retail and businesses relying on train travel might face challenges due to planned rail strikes in the first half of February, optimism prevails with the approaching half-term and the Easter break, historically delivering a surge in footfall and providing a potential boost for the retail sector in the first quarter of 2024.
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