Much needed good news for UK physical retailers as January sees first annual footfall uplift since 2016

Footfall defied seasonal expectations, rising by +1.4% year on year in all UK retail destinations, according to MRI Software research overing the five-week period from 29th December to 1st February.

Despite heavy snowfall and two named storms, shopping centres led the charge with a +1.8% increase in footfall followed by retail parks (+1.4%) and high streets (+1.1%). The last time it rose annually in January was in 2016 (+1.2%), outside of the Covid pandemic period, and may well signal the year kicking off with a strong return to office as businesses encourage employees back.

Month on month, the usual post-holiday decline saw footfall fall by almost a fifth in all UK retail destinations. This was driven by a sharp decline in the second week of the month when schools and offices reopened, however it was likely amplified as heavy snow and travel disruptions affected much of the UK. High streets experienced the steepest drop in footfall from December to January falling by -22.4%, this was followed by a -21.7% decline in shopping centre activity, and by -16.5% in retail parks.

The return to office was evident throughout January despite adverse weather with weekday footfall rising by +1.6% compared to last year whereas weekend footfall fell by -3.5%.

MRI Software’s Central London Back to Office benchmark highlighted a +1.4% year on year uplift in footfall throughout January with much of this driven by a +4.4% increase during the early evening period (17:00-20:00) - an encouraging sign as January typically tends to be the month of austerity but, with an increase in after work activity, retail leaders should be looking at strategies on how they can capitalise on this growth, MRI Software argues.

Evening shopping (post 5pm) is the most common time for office workers to visit retail destinations with around 34% choosing to do so. Tuesdays, Wednesdays, and Thursdays see the highest overlap in office work and shopping activity, with 58% of respondents attending work weekly on Tuesdays and aligning retail visits for midweek convenience.

On days when employees work from the office, 31% of respondents stated they visit high streets during lunch hours, the highest among all destinations, highlighting their proximity and convenience during work breaks.

As we head into February, the impact of the autumn budget is likely to start being felt by both consumers and retailers alike. In early January, retailers reported on post-Christmas trading and along with this many announced they would be increasing their product prices including Next, Tesco, Amazon and Greggs.

This aligns with retailer sentiment gathered from MRI Software’s Insights from the Inside which recently revealed that 39.4% of retailers surveyed were planning to increase product prices over the next month.

A small number of brands have recently announced high street store closures and as these brands rethink their physical presence amidst financial pressures, the key remains in understanding the data and trends shaping these decisions - from operational and strategic insights to overall market trends.

2024 RTIH INNOVATION AWARDS

Physical retail was a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering.