Amidst a turbulent landscape marked by storms, rail strikes, and economic fluctuations, the retail sector managed to hold its ground and even show progress in 2023, according to the latest insights from MRI Software.
Despite the challenges, average retail footfall in 2023 outpaced that of the previous year by 3.3%, though it still lagged behind 2019 figures by 11.5%. Nevertheless, this marked an improvement from 2022, which saw footfall decline by 14.2% compared to 2019.
The impact of the cost-of-living crisis became evident in October as consumer spending tightened, causing footfall to dip below 2022 levels for the first time since April 2021, registering at -1.3% across all retail destinations.
Notably, the 2023 figures are significant as they represent the first full trading year unaffected by direct pandemic influences, according to MRI.
Key highlights include spikes in high-street footfall during peak periods such as the Easter break, witnessing a 17% rise, and during October’s half-term with a 10.5% increase. Black Friday also contributed positively with a 10% spike.
Analyzing footfall trends by retail destination, MRI found that high streets experienced a 2.7% decline year-on-year, while shopping centers fared slightly better with a 1% decrease. Retail parks, however, saw an uptick in footfall by 1.3%.
Compared to 2019, high street footfall was down by 13.8%, shopping centers by 15.6%, and retail parks by only 2%.
On a regional level, footfall increased across all regions compared to 2022, with Northern Ireland leading the pack with a 5.5% uplift. Significant gains were also observed in Scotland, London, Wales, and the East.
MRI’s analysis of store sales by category revealed positive trends in food (8.9%), entertainment and books, health and beauty (9.1%), and home DIY and garden stores. However, the electricals category experienced a decline of approximately 10%.
Looking ahead to 2024, the report acknowledges signs of improvement but also notes the delicate state of the UK economy. While inflation has slowed, consumer prices remain high, impacting spending power. However, stability in this regard could lead to a gradual recovery throughout the year, bolstered by increasing consumer confidence in their financial situation and purchasing capabilities. Additionally, international conflicts pose a potential challenge, likely to disrupt stock availability due to delays in imports.