Time for retailers to show their Mettle
5 October 2007
UNITED KINGDOM — The latest Retail Traffic Index (RTI) figures from research group Synovate Retail Performance, show that September shopper numbers were down by 0.5% against the same month of 2006 and down by 8.9% compared with figures from August this year. The topsy-turvy retail year continued with the Q3 overall figure showing no change against last year, following a rise of 2.2% in Q2 and a fall of 0.9% in Q1.
According to Dr. Tim Denison, Director of Knowledge Management at Synovate Retail Performance and leading retail psychologist; "I think many retail analysts will be forced to admit that shoppers have been more resilient for longer into this year than we had expected. That said, it's difficult to forecast anything other than a challenging next quarter for the retail industry.
"Our data strongly suggest that the gap in the number of shopping trips being made to non-food outlets over the remainder of 2007 versus 2006 will worsen progressively by 0.5% each month, leading to a 2% year-on-year fall in December. Despite this bad news for retailers, the expected decline in shopper visits will actually be less than it was in Q4 2006 compared with Q4 2005 (down 3.1% then). However, it will come at a time when many retailers are feeling the strain of a particularly difficult trading year.
"It should be remembered that this time last year the talk was all about the tightening credit squeeze on consumers and the growing insolvency levels. Twelve months on and the topics occupying the thoughts of economists and city analysts are still much the same, but the situation is just that little bit more acute:
- debt levels are still rising and have trebled now in a decade, albeit that the majority is secured on housing
- the further tightening of credit conditions after the run on Northern Rock can only add to consumer nervousness
- debt servicing as a percentage of disposable income is now at its highest level for fifteen years
"There is a certain inevitability in the toughening conditions confronting retailers, but there is no industry sector more irrepressible in this country than retailing. Christmas 2007 more than any other of recent times will be all about getting the basics of product, value and service right, delivering what the customer demands, and executing it that little bit better than before.
"Our experience is that retailers now more than ever are applying strict analytical disciplines to their businesses and leaving very little to chance or 'creative hunches'. They know increasingly that they cannot afford to make even one costly mistake with product, pricing, marketing or staff."
Contact(s) for this press release
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Tim Denison
Synovate Retail Performance |
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34 Walker Avenue |
Tel. +44 (0) 1908 682 700 |
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Theo Chalmers
Managing Director, Verve Public Relations |
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Park House, 8 Grove Ash |
Tel. +44 1908 275 271 |
Synovate Retail Performance provides footfall monitoring solutions, shopper tracking systems and in-store behavioural research to retailers worldwide. Its core products - Shopper Count, Shopper Interact and Shopper Engage - scientifically measure all aspects of a shopper experience from store entry to exit. It supplies national and international retailers with essential business metrics to drive accountability and performance improvement.
Synovate Retail Performance is home to the Retail Traffic Index series, which for over 10 years has been the industry's leading tracker of national, regional and sector retail footfall trends. It is also co-founder of the KPMG / Synovate Retail Think Tank, offering thought leadership on the state of retail health and the future of retailing.
General information for Synovate Retail Performance, email info.rp@synovate.com
Synovate Retail Performance Limited is registered in England and Wales under number 3552625 with its registered address at Minerva House, 5 Montague Close, London, SE1 9AY, UK. Synovate Retail Performance is a wholly owned subsidiary of Synovate.
About The Retail Traffic Index (RTI)
The RTI from Synovate Retail Performance is regarded as the national benchmark of retail shopper traffic flow. It is constructed using a nationally representative sample of over 520 million visits to over 3,100 retail premises per annum across the UK, excluding the grocery, convenience and minor retail service sectors.
For further details and a full explanation see here.
About the the KPMG / Synovate Retail Performance Retail Think Tank
The RTT was founded by KPMG and Synovate Retail Performance in February 2006. It now meets quarterly to provide authoritative 'thought leadership' on matters affecting the retail industry. All outputs are consensual and arrived at by simple majority vote and moderated discussion. Quotes are individually credited. Releases and White Papers can be viewed by visiting here.
About Synovate
Synovate generates insights to help clients drive competitive brand, product and customer experience strategies. Now part of Ipsos, with offices in over 80 countries, our approach combines best in class global research capabilities with personalised service, local knowledge and the flexibility to create teams and processes that meet clients' specific requirements. At Synovate, our clients sit at the top of our organisational chart, driving us to continually develop more innovative research solutions that predict actual business outcomes.
For more information on Synovate visit www.synovate.com.