Shoppers and retailers in discount stand-off
23 12月 2008
UNITED KINGDOM — Figures released today from Synovate Retail Performance show that the number of people out shopping across the UK in the third week of December (14th to 20th December inclusive) was up by 12.3% on the previous week, but down by a very significant 10.7% on the corresponding week of 2007. Over the course of the final weekend before Christmas (20th and 21st December), retail footfall on Saturday was up 15.4% on the previous week, but down 5.0% on the same Saturday in 2007. Sunday followed a similar pattern with shopper numbers up 8.5% on the previous week, but 4.5% down on last year. Monday (22nd) saw shopper numbers up 1.6% on Saturday, which knocked Saturday off the top slot as the busiest day of the year so far.
The West End of London provided the main source of cheer for retailers. There, the number of non-food shopping trips over the weekend, stimulated by tourists capitalising on a weak pound as well as by local last-minute bargain hunters, was up by 24.5% on the previous weekend but was nevertheless down by 1.5% year-on-year despite some extraordinary claims made elsewhere.
Synovate retail psychologist Dr Tim Denison explained, "Overall, retailers will be slightly disappointed by these top-line figures. The main damage was suffered in the early and middle part of last week. It wasn't really until Friday before we saw week-on-week figures showing the sort of double digit uplift that we have become accustomed to seeing in the final full week before Christmas.
"Shopping activity since Friday has certainly improved and should be considered as 'respectable' in the context of current conditions, but the quiet start to last week represents lost ground that will not be recovered."
Denison continued, "With just a couple of trading days left before Christmas, retailers will be hoping that shopper numbers will continue to swell and strengthen right up until closing time on the 24th. The principal problem the shops have faced is simply very weak levels of underlying demand, where even price cutting has had limited impact. However, with one or two notable exceptions such as MFI and Woolworth, this has not been a 'give away' Christmas for most retailers. The vast majority of them, despite offering some limited, selected stock at savagely discounted prices, have kept most discounts to a very sensible level. This has created something of a discount stand-off between shoppers and retailers with many shoppers expecting better bargains than they've actually realised on the goods they really want.
"What we've yet to discover is the retailers' game plan for their Sale season after Christmas. With non-food shopper numbers in the first three weeks of December down by 8.0% year on year (slightly worse than Synovate's forecast of a fall of 7.3% for the month) there is likely to be more Christmas stock unsold than hoped and shoppers who can still afford to spend after Christmas may, finally, be spoilt for choice in both selection and price."
The next figures to be released by Synovate will be on Christmas Day, reporting upon the two final days of Christmas trading, 23rd and 24th December.
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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Chris Scoot
Synovate Retail Performance |
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34 Walker Avenue |
Tel. +44 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.