Synovate predicts brave new world of retail as numbers 'fall off a cliff' at start of 2009
4 February 2009
UNITED KINGDOM — The first Retail Traffic Index (RTI) figures released by Synovate Retail Performance for 2009 confirm a very slow start to the year for retailing in the UK. The number of shopping trips made to non-food stores in January was down by 3.7% against the same month a year ago and by 27.9% on December.
The first full week of the year (w/c 4th January) saw retail footfall levels 'fall off a cliff' from the plateau that had been sustained over the last three busy weeks of December. Shopper numbers for the week were 25% lower than the final week of 2008. Over the remaining three weeks of January, numbers stabilised somewhat but still slid by a further 10% on average against the first week. Footfall for the month dropped to the levels more typical of February.
Synovate retail psychologist Dr Tim Denison said, "We are entering a brave new retail world. The boost to retail footfall created by the winter Sales was shorter-lived than ever this year. Since post-Christmas Sales launches replaced January ones in recent years, we have come to expect their impact to last well into the first fortnight of the New Year. This time around, Sale shoppers hit the stores earlier and en masse to compete for the best bargains after retailers had largely held their pricing nerve in the weeks before Christmas. That late December frenzy left little in reserve for January. Concerned about what 2009 will bring for them, consumers are being understandably cautious about spending. For the first time since mid-2007 we are seeing credit card loans begin to fall, but this may be more about supply than demand shortages.
Denison concluded, "It is very difficult at the moment to be upbeat about the health and prosperity of the retail sector. These latest Synovate figures confirm that consumer demand is currently fickle and unpredictable. Retailers will need to stay very close to their shoppers' behaviour and hyper-sensitive to their needs to win their custom over the coming months."
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
|
Chris Scoot
Synovate Retail Performance |
|
|
34 Walker Avenue |
Telephone: +44 1908 682 700 |
|
Theo Chalmers
Managing Director, Verve Public Relations |
|
|
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.