Unexpected may upturn in shopper numbers confounds trend
4 June 2008
UNITED KINGDOM — Latest figures from the Retail Traffic Index (RTI) by analysts Synovate Retail Performance, now part of global research company Synovate, show that the number of non-food shopping trips in May was an unexpected 2.2% higher than for the same month in 2007, and was up 6.4% on April this year, the first time that the month has outperformed its predecessor for 3 years.
Synovate Retail Performance's retail psychologist, Dr Tim Denison explains; "Good weather for the first half of May this year boosted shopper numbers considerably, unleashing latent interest especially in seasonal ware. We really hadn't expected such a marked resurgence. Towards the end of the month as the weather turned less favourable, the boost in footfall was sustained by retailers launching 'catch them while we can' extra early Sales.
"A closer look at the figures asks more questions that it answers. Are we seeing an improvement on trend and a move upwards from the lower shopping plateau that we believe was reached last month? Probably not. First of all the weather in May 2007 was very poor, after a bright April, and consumers stayed home rather than brave it, hoping for blue skies that never came. This has flattered this year's figures. Secondly, after a poor March and April this year many retailers have now launched their latest campaigns to capture footfall and convert every browser into a shopper. These include very deep discounting, particularly with higher-priced goods, such as furniture, electronics and homewares.
"Beside the unrelenting strain on household finances, the failure of any home nation to reach the finals of Euro 2008 won't have been lost on retailers. The decision to bring campaigns forward to even earlier than last year and make them even more compelling, is designed to boost business and re-engage the shopper, where a major football competition won't contribute this time around. This is no more apparent than in the TV market, where we are seeing new technology such as Full HD, which would normally be expected to attract a premium, competing squarely with older technology such as HD-ready; a sure sign of intense pressure on retailers.
"Looking forward we predict that June will see even more special promotions designed to get shoppers out of their homes and into the stores. Expect to see downloadable vouchers, normally only seen at Christmas; one-day or even one-hour events; special warehouse 'Summer clearances' and stock liquidations in every sector. Expect a bargain bonanza right through to September."
All enquiries for follow up or interviews with Dr Tim Denison should be directed to Theo Chalmers at Verve PR on 01908 275271 (weekdays) or 07932 004632.
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 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.