Retail footfall slumps again in May says Synovate
9 June 2009
UNITED KINGDOM — The Synovate Retail Traffic Index (RTI) figures for May 2009 show that April's upturn in both UK shopper numbers and retail sales simply marked a temporary respite and that foot flow into non-food shops has not yet reached stasis. April had recorded the strongest year-on-year rise in retail footfall for over 5 years (since February 2004), but in May the numbers slumped by 5.1% against the same month a year ago. Retail footfall levels were also down by 3.1% in May against April 2009.
Synovate retail psychologist Dr Tim Denison explains, "Over the last two months, the latest bugbear to have hit high street retailers is 'shopper unpredictability'. The first quarter was understandably subdued, but expectedly so. Consumer confidence was crushed and this reflected harshly both on retail sales and footfall. April, however, was better than any of us could have wished for; it was certainly far busier than we had forecast. Optimists might have seen the start of quarter two as the beginning of 'the turn'. Unfortunately, our latest data would suggest that any such call is premature. The volatility in our footfall figures and retail sales figures reflects the fragility of people's 'feel good' mood swings and their preparedness to go out and spend on the high street.
"For retailers, the current consumer state presents new challenges. Should they continue to develop and run even more creative one-off promotions, stimulating demand, but sacrificing margin, or should they look to shore up and back 'the new retail reality' of every day low prices. It seems to me that the way forward in the short-term is about 'catching the imagination'; whether that is through impactful promotions or must-have products. There is still an opportunity for retailers to generate 'desire', particularly as the heady days of summer approach.
"There is also considerable trust being placed by retailers in the 'stay at home' or 'staycation' phenomenon and it's likely that retailers in or near traditional UK-based tourist resorts will see good uplifts, particularly those that cater for holiday essentials such as barbecue and other holiday food for campers, caravaners and self-caterers; cosmetics and healthcare such as sun creams, sunglasses and insect repellents; summer fashions particularly childrenswear, as adults may well 'make do'; and 'treats' such as ice cream, soft drinks and alcohol such as bags of ice sold alongside refreshing ciders and pre-chilled sparkling wines. Car accessories such as roof boxes and camping gear are expected to do well too. Those that don't even leave home may well invest in garden furniture, gazebos, free-standing pools and barbecues, but value will be key. Making do and being satisfied with your lot is increasingly acceptable in our transforming society it seems."
Unfortunately Dr Tim Denison is unavailable for interview this month. Enquiries 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.