August footfall disappoints but September may see a fashion-led mini-boom, says Synovate
4 September 2009
UNITED KINGDOM — The latest Synovate Retail Traffic Index (RTI) for August has seen the return of disappointing shopper numbers for the majority of over 5,000 non-food retail outlets tracked throughout the UK. The RTI recorded a fall of 2.9% in retail footfall year-on-year in August and a 2.2% drop on July's numbers.
Synovate retail psychologist Dr Tim Denison explains, "These remain very testing times. Last month we reported that July's footfall showed a slight increase on the previous year, for August it has gone the other way. We're sailing in fluky conditions, where a slight change in wind direction causes the shopper to change tack. Last month the marginal uplift in consumer confidence seen during the early summer months stalled again, no doubt affected by news of the rise in the rate of unemployment to 7.8%. It is this type of headline information which appears to be holding sway with consumers on whether they decide they can afford to spend a little more or whether they should be more cautious and save. With new figures from the Bank of England showing that people generally are electing to pay off their debts rather than accumulate new ones, credit cards have been given their own summer holiday in many wallets and purses.
"The line between deciding to save or spend a little more remains a fine one, which gives retailers cause for some optimism. As we change seasons, we expect those stores offering new autumn/winter lines that are well-priced and on-song to tempt more people to tiptoe into the spending set. Consumers will doubtlessly be aware that retailers will not be carrying so much stock, so early raids are likely to avoid disappointments.
"The trick for retailers will be to promote strongly, effectively and on-message to capitalise on the opportunity, while the benign conditions remain. If this is achieved we can hope to see a kick-start to shopper numbers in September, particularly for retailers of women's fashion. The kids are back at school and there is scope for working women and housewives alike to feel tempted to revive their wardrobes in the relative peace and tranquillity before the Christmas madness starts, if garments and prices catch the eye. With another winter of uncertainty ahead, retailers will be intent on making the most of the calm, unsure of how stormy the economic conditions will become and how badly these will further affect consumer confidence and spending patterns."
Enquiries for 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 |
Telephone: +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. 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.