Shopper numbers take a tumble in the snow at the start of 2010, says Synovate
2 February 2010
UNITED KINGDOM — Latest UK footfall figures from Synovate Retail Performance reveal that January 2010 has been the worst start to a new year for retailers in half a decade. According to Synovate's Retail Traffic Index the number of shoppers in non-food stores over January was markedly down, by 5.0% on the same month in 2009, itself badly affected by the recession. Not since January 2005 when it was down by 5.2%, has the year-on-year decline been so great. For the second month running and only the second time this decade, none of the regions showed a year-on-year rise in store traffic. The month-on-month fall of 27.5% against December was slightly better than forecast.
Synovate analyst Tim Denison explains: "2010 has kicked off desperately slowly for retailers, lending support to retailers' concerns that, despite a strong Christmas, it's going to be another tough year on the high street. The tumble has been accentuated by a number of clear factors.
"In terms of damage to the national footfall figures, it was the heavy and persistent snow falls across many parts of the country during the month that had the most impact, giving retailers the worst possible start to the year. When advised to travel 'only if essential', recreational shopping failed to fit the bill, adding to retailers' woes. At its worst on the 6th, numbers were down 30% nationally, and for days after the scene was little better.
"Last January, in the midst of recession, retailers were fighting another battle. In an effort to clear unwanted stockpiles, they were discounting aggressively to tempt reluctant shoppers. Not so this year; some retailers have even had to bring lines forward to fill Sale areas that we emptied in December. Given the trading strength last month and with stock management under better control, many retailers chose not to stimulate demand heavily this month.
"Finally, the increase in VAT rate at the start of January injected impetus into December's trading, but at the expense of this month's footfall. Though, in fact, prices have remained largely unchanged, with retailers taking the hit, consumers didn't take the chance and many decide to buy before the rise was imposed.
Looking forward, the big questions are how strong is underlying demand now, if we take away these extraneous factors, and how robust will it be in the months ahead? At present it's very difficult to tell. Consumer confidence remains weak with public spending cuts, rising unemployment and personal tax increases all threatening to do further damage and a general election, adding further uncertainty, in the wings. Officially, the recession may be over but retailers know that it may not even be in abeyance and their strategists will be working out their next plays to keep the tills ringing and to limit the damage."
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.