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. Originally founded as Solution Products Systems Ltd (SPSL) in the UK in 1998, it was acquired by Synovate in December 2007 and now offers unrivalled global reach and scalability through Synovate's network of in-country teams and three specialist hubs based in Europe, North America and the Far East.
It supplies national and international retailers with essential business metrics to drive accountability and performance improvement. Synovate Retail Performance harnesses powerful retail and shopper intelligence and creates real deployable insight, to deliver its mantra of "Measure, Manage, Improve" to clients.
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. Synovate Retail Performance is part of Synovate Customer Experience, Synovate's global business practice specialising in the profitable management of the total sum of all customer interactions.
For more information on Synovate Retail Performance click here.
About Synovate
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 6,400 staff across 62 countries.
For more information on Synovate visit www.synovate.com.