Retailers enjoy best footfall in two years, BRC-Springboard data shows

Monthly data from the British Retail Consortium and Springboard revealed footfall in January 2016 was 1.2% higher than the same month in 2015, a marked change from the 2.2% decline endured.

The BRC-Springboard survey found high streets enjoyed their first rise in footfall since July 2013, excluding Easter distortions, significantly ahead of December’s 4.0% decline.

Footfall growth in shopping centres was broadly flat in January, it best performance since January 2014, while footfall in retail park locations increased 5.2% year-on-year, its best performance for two years and well ahead of December’s 2.1% rise and above the 3-month average rate of 3.0%.

From a property perspective, the national town centre shop vacancy rate was 8.7% in January 2016, improving from the 9.1% rate reported in October last year and the lowest reported rate since the data was first reported in mid-2011.

This improvement in vacancy rate was driven by an increase in pop-up shops and temporary lets in the run up to Christmas and which have remained occupied.

“The increase in footfall across all retail destination types, the first since December 2011, alongside the rise in spending in January, finally demonstrates what is well known - that bricks and mortar shopping environments are still important to consumers," said Diane Wehrle, marketing and insights director at Springboard.

Analyst Clive Black at Shore Capital said unfortunately December is a good deal more important in spending activity, certainly traditionally, than is the case for the first month of the New Year.

"That said, the rebound is welcome, perhaps putting on hold for a little while some of the epitaphs for the high street’s future."

He added that the legacy of recent trading patterns is likely to persist.

"Retail management continue to digest, reflect and react to the progressive move online, most notably in non-food – there may be a slowdown in online grocery momentum as delivery charges and slots become more rationally managed – and how full-year trading patterns may be adjusting to Black Friday and the evolving peak period. The outcome of this work is yet to be fully understood, but we foresee an evolution towards a more British Black Friday."