January footfall to stores is usually unimpressive in the UK, despite the allure of the clearance sales. But there was a surprise on Thursday when tracking specialist MRI Software said it rose year on year for the first time since 2016.
It will be intriguing to see what other footfall reports for the period say given the slightly different date ranges and other methodologies trackers use.
That January 2016 date might be significant given that it was the year we’d see the Brexit referendum, followed by the pandemic so it’s perhaps not unexpected that visitor traffic to stores has been sluggish in multiple months across the year since then (apart from some odd spikes linked to the rush after lockdowns were eased, with such figures often factored out given their exceptional nature).
So what actually happened last month — or more accurately, what happened in the five weeks from 29 December to 1 February?
Footfall rose 1.4% compared to last year in all UK retail destinations, led by a 1.8% boost in shopping centres (we’ve already heard a raft of malls hailing strong results so that’s not a shock). That was joined by a 1.4% rise in retail parks, and 1.1% in high streets. As mentioned, this is the greatest year on year increase seen (outside of the pandemic era) since January 2016 when footfall rose by 1.2% for the same period.
Admittedly, month on month footfall declined by 20.8% in all UK retail destinations, but that aligns with historical trends observed each January following the festive season.
Weekday footfall in January rose 1.6% year on year in January but weekend footfall declined by 3.5%. This is particularly important as it could be an indicator of many more employees returning to offices throughout the month and so providing the weekday boost not seen for since before Covid disrupted the retail sector.
MRI Software’s Central London Back to Office benchmark revealed a 1.4% uplift in January footfall year on year driven by a 4.4% rise during the early evening period (5pm-8pm). Weekday footfall in office-dense locations within London rose by 4% compared to January 2024.
The firm’s Consumer Pulse report revealed that evening shopping (post 5pm) is the most common time for office workers to visit retail destinations with around 34% choosing to do so.
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.
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.
The fact that Mondays and Fridays don’t figure strongly here underlines that many people still work from home for one or two days a week.
The weather may have been a factor too. Despite some bad weather across the UK, new figures say that globally January was warmer than expected so perhaps some brave souls ventured out because the usual snow and heavy rain might not have been quite as heavy as in other years.
As for the future, anyone shopping in the next few weeks might be disappointed by higher prices. The Autumn Budget is starting to impact retail strategies as almost 40% of retailers surveyed in MRI Software’s weekly ‘Insights from the Inside’ poll revealed they were planning to increase product prices over the next month.
Post-purchase experience software provider parcelLab has launched its “industry’s first” Post Purchase Experience (PPX) Maturity Curve for retailers.
The framework “empowers retailers to discover how they compare to competitors and the strategic methods necessary for them to exceed best practices, build long-term customer loyalty, and drive new revenue”, it said.
With parcelLab’s latest innovation, it said brands can “benchmark against industry peers and truly work toward creating customers for life”.
The service includes a deep analysis of a company’s current post-purchase experience performance “by detailing steps to advance PPX maturity and evolving current strategies”. These methods assist retailers “to exceed growing customer expectations and increase brand loyalty”.
Zack Hamilton, SVP, Growth Strategy & Enablement at parcelLab, said: “This has been created based on one core belief: the post-purchase experience is pivotal in building long-term customer loyalty and increasing revenue.
“Through our initial analysis of over a thousand brands, we’ve discovered that many are still using tactical, reactive strategies and minimally focusing on personalisation. With this PPX Maturity Curve our team of experts can help organisations build the capabilities to transform mundane operational touchpoints into unique moments of pure joy for their customers.”
He also said the latest development “will see top retail brands learn and share PPX best practices as well as being offered thought leadership insights, networking opportunities, specialised training, and more”.
It might be easier to write about major shopping centres that haven’t done well. Braehead, the Scottish shopping and leisure destination, has told us of its “exceptional success” in 2024.
“With significant year-on-year growth in footfall, these results reinforce Braehead’s position as Scotland’s go-to… destination”, said new owner SGS Group.
Throughout 2024, the Glasgow mall saw an impressive 8.5% increase in footfall compared to the previous year, a rise that was also apparent during the critical Q4 ‘golden quarter’ with a 5.7% uplift compared to 2023 “as visitors were drawn to the centre to experience its diverse range of retail, food and leisure operators”.
The centre’s line-up was enhanced in 2024 with several store refurbishments and new openings including fashion brands Mango, Phase Eight, Castore and Remus Uomo joining its array of over 100 popular high street brands, including M&S, Primark, H&M, MAC and Apple. An already strongly-performing health & beauty category was also enhanced by the arrival of Rituals and Kiko Milano.
Looking ahead, the mall operator noted too that with the upcoming opening of the new River Clyde Bridge in March, Braehead will be able to increase accessibility to a wider catchment “to expand market penetration further”.
Rob Jewell, managing director, Asset Management at operator Pradera Lateral, said: “2024 has been a defining year for Braehead Shopping Centre, culminating in impressive footfall figures to end the year. With the addition of more globally recognised brands, alongside reinvestment from established retailers and its new owner SGS, the centre continues to be a leading shopping and leisure destination in Scotland.”
Ralph Lauren raised its annual revenue forecast on Thursday, betting on more younger shoppers picking up its spring collection of dresses, skinny cuffed trousers and floral dinner jackets.
Shares of the apparel maker rose 8% in premarket trading.
Unlike European fashion houses LVMH, Hugo Boss and Kering, Ralph Lauren has enjoyed strong demand as efforts to invest in brands such as Polo and Purple Label helped pull in wealthy shoppers, especially from the younger demographic.
Ralph Lauren has also posted strong sales in China over the past nine quarters, as an e-commerce expansion on the Douyin platform and the opening of full-price stores boosted demand for its clothing.
China accounts for about 8% of the company’s total sales.
Demand at Ralph Lauren’s direct-to-customer channels also remained robust, driven mainly by full-price sales, while its wholesale business is starting to recover in North America following muted growth for several quarters.
The company now expects 2025 revenue to increase between 6% and 7%, compared with its prior forecast for a 3% to 4% rise.
Its third-quarter sales rose to $2.14 billion from $1.93 billion a year earlier, compared with analysts’ estimates of $2.01 billion, according to data compiled by LSEG.