Retailers continue to endure long winter as shopper fatigue rolls on into February, says Synovate
2 March 2010
UNITED KINGDOM — UK footfall figures from Synovate Retail Performance reveal another fall last month - the fourth consecutive month where there has been a year-on-year decline. The Retail Traffic Index (RTI), the national measure of the shopper numbers entering non-food outlets, dropped 1.3% in February against the same month in 2009; also falling month-on-month by 3.1% against January's figures.
Synovate Director of Retail Intelligence, Tim Denison, explains: "After such a slow start to the year in January, retailers were hoping for better things last month, but our figures show little evidence of any respite. The fatigue that hit shoppers in January, after their short-lived buying frenzy at the end of December, persisted throughout February. The year-on-year comparison was better than January's - which was down by 5.0% on the same month in 2009 - but the first fortnight of February 2009 was disrupted by heavy snowfall, somewhat flattering the comparison.
"What we really need to understand is the underlying cause of the weak footfall. If it is the ongoing cold and inclement weather that is primarily keeping people away from the shops that is one thing, but if it is derived from an inherent deep-seated weakness in demand it is quite another matter - and one that is far more concerning for retailers and for the state of the general economy. A sustained period of spring sunshine will give us some vital clues."
The ending of several consumer stimulants such as the reduced VAT rate, the stamp duty reduction on some properties and the car scrappage scheme means that the consumer economy now has to stand or fall on the strength of consumer demand. It is only now that we will begin to see whether the "borrow-and-spend" strategy that pulled spending forward into 2009 was at the expense of consumer spending in 2010. Stronger demand and lower costs came to retailing's rescue in 2009, but both look under pressure now. Significant rises in cost of freight from the Far East, likely to push up price inflation in the non-food sector, presents retailers with their next chapter of challenges.
Looking forward, Easter is slightly earlier than last year which will help boost footfall figures at the tail end of March but we may not know whether consumer demand has really taken some heart from our economy formally leaving recession, admittedly by the smallest possible margin, for quite some time. Once again it seems likely that retailers will continue their policy of tightly managed stock levels and rigidly protected margins. These are both strategies which serve to protect the market leaders but sadly lead weak stragglers into real danger of business failure.
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.