Christmas cheer for UK physical retailers as they rise above onslaught of festive disruption

UK physical retailers battled a cold snap, and rail and postal strikes as they rallied in December, with store performance last month posting its best footfall counts compared to pre-Covid pandemic figures all year, according to research from the BRC and Sensormatic Solutions.

Total UK footfall decreased by 7.3% in December (Yo3Y), 6.0 percentage points better than November. This is better than the three-month average decline of 10.2%.

Total UK footfall for 2022 was 11.8% below pre-pandemic levels. This was a big improvement on 2021 which was 33.2% below pre-pandemic levels.

Helen Dickinson, Chief Executive at the British Retail Consortium, says: “Historically low consumer confidence and 30 year high inflation made for an exceptionally difficult year for consumers and retailers, with footfall down over 10% on pre-pandemic levels.”

“Nonetheless, this was still a significant improvement on the previous two years when the pandemic kept many people at home. Although retailers’ input costs show little sign of easing in 2023, they continue to do all they can to keep prices affordable and tempt customers in.”

Andy Sumpter, Retail Consultant EMEA at Sensormatic Solutions, comments: “Retailers rose above an onslaught of festive disruption, from snow chaos to rail and mail strikes impacting consumers’ shopping journeys both on- and off-line, disrupting pre-Christmas travel to shopping hubs and creating online delivery backlogs and delays.”

“And, once again, it was the in-store teams that kept retailers’ doors open and able to continue to serve their customers and communities.”

“Looking ahead to 2023, retailers will be hoping for more stability and support to help them chart a trading course for success in the light of continued economic headwinds, as they adapt their retail offers to the needs of the cost-of-living consumer.”