UK retail footfall throughout February showed “resilience amid seasonal and economic pressures” as retailers look [nervously?] ahead to the Spring Budget.

That’s MRI Software’s take on retail visits across the 2 February-1 March trading period as footfall fell by 0.3% compared to last year in all UK retail destinations. The decline was driven by a 1.5% dip in high street activity.

“This aligns with trends typically witnessed in February and may be reflective of adverse weather conditions and transport disruptions impacting footfall”, the report noted.

But on a month-on-month basis, footfall numbers were more upbeat, rising 7.3% in all UK retail destinations “which aligns with historical trends observed each February as activity levels normalise following the post-Christmas slump”.

Weekday year-on-year footfall last month rose marginally (+0.1% year on year) whereas weekend footfall declined 3.8%, which “may well reflect shoppers urging caution in light of price increases”, MRI said.

Footfall trends over a 24/7 period also highlighted a core area of growth, with the early evening period (5pm–8pm) growing by 0.9% annually during February, “continuing the positive trend in the evening economy as consumers combine leisure, dining and retail experiences”.

However, that weekend footfall drop suggests “that shoppers may still be managing discretionary spending carefully in light of ongoing cost pressures”.

And MRI’s ‘Central London Back to Office’ benchmark also highlighted a 3.5% drop in footfall during February compared to last year, the first annual drop experienced in 11 months, it noted.

But it highlighted that the flu season, which has been especially disruptive in recent months, “is likely to have impacted people’s willingness and ability to visit busy retail destinations and offices”.

The report also said that “retailers remain optimistic” as 55% of those surveyed in its weekly ‘Insights from the Inside’ poll revealed sales during the February half-term holiday were higher this time compared to last year. It provided a boost for physical retail destinations, particularly shopping centres and high streets where footfall jumped 9% and 11.6%, respectively,

However, 58% of retailers contacted also expect March sales to be lower compared to last year as the Easter holiday shifts into mid-April.

“As the sector prepares for the upcoming Spring Budget, attention is turning to how financial policies may further influence consumer confidence and retail spending. Potential changes in tax, public spending, and household support will be closely monitored for its impact on disposable income and retail demand in the months ahead”, MRI concluded.

The powerful bond between father and son come to the fore in Hackett London’s spring/summer 25 campaign. An emblem of the “richness of heritage and the evolution of style” the men’s fashion retailer has chosen high-profile Formula 1 racing driver Carlos Sainz and his former racing driver father (also Carlos Sainz) to spearhead the campaign.

Their shared story “aligns seamlessly with Hackett’s values” while also “capturing the essence of the Hackett man: a distinguished individual, refined yet versatile, navigating every stage of life with style and purpose”.

The pair, we’re told, epitomise the Hackett’s SS25 Collection with son Carlas “embodying the youthful energy and a contemporary edge”, while father Carlos “represents sophistication, confidence and wisdom”.

For special occasions, the younger Sainz is seen in a refined Prince of Wales Suit crafted from a wool-silk-linen blend, complemented by a formal herringbone shirt with a Knightsbridge cutaway collar. His father is pictures in a navy blue Travel Suit of 100% fine wool, paired with a cotton twill shirt and a double-breasted pure linen waistcoat. 

Sainz junior also sports a suede overshirt in sand beige over a fine cotton-silk polo, selvedge denim jeans, and Burton tassel loafers, while the Sainz senior wears a Velospeed field jacket, a cotton- silk jersey, classic chinos, and polished leather loafers.

Lighter summer styles feature linen shirts, soft knitwear, and relaxed chinos. 

The wider collection focuses on relaxed blazers, jackets, and jersey options, for transitional weather conditions with aoft, breathable cotton and silk knitwear enhancing the collection’s light, airy appeal.

Classic patterns, stripes, and refined prints feature prominently, with short-sleeve shirts, linen polos, and tees offering a fresh seasonal update in a range that also includes delavé blazers, trousers, and jackets.

When a trading statement opens with “strong delivery, exciting medium-term targets with compounding cash and earnings growth” you know it’s going to be an easy one to write.

So London-listed industrial threads and footwear components manufacturer Coats Group delivered a stream of (mostly) positives for the year ended 31 December.

It led with revenues up 8% to $1.5 billion on a reported basis and 9% currency neutral (CER) as customer buying patterns normalised versus 2023 when businesses in general were impacted by pandemic-related  destocking.

Apparel and Footwear revenues grew 13% and 10%, respectively.

But Performance Materials failed to perform again, impacted by weakness across all North America end markets while there was also structural softness in North American Yarns, it admitted.

Back to the good: group adjusted EBIT rose 16% reported and by 18% CER to $270 million while the EBIT margin of 18% was ahead of the previously-announced 17% 2024 margin target. And that came despite in-year margin headwinds from that weaker PM division.

Strategic highlights included a continued outperformance against the industry in Apparel and Footwear with further market share gains (+100bps Apparel and +200bps Footwear).

There was also an extended global market leadership in 100% recycled thread products where revenue grew 144% to $405 million, “a further significant acceleration in industry adoption”, its noted.

Meanwhile, that troublesome Performance Materials division has seen its Americas manufacturing footprint “right-sized” in Q4 with the closure of the Toluca site “to align to structural softness in North American Yarns [that will] drive immediate margin improvement”.

As for Coats’ new medium-term targets, these include 5% average organic revenue growth; EBIT margins to grow to 19-21%; an expected generation of $750 million adjusted free cash flow over the next five years; maintaining a strong financial position; managed investment to sustain organic growth; and an increasing opportunity “to enhance value-creation through acquisitions”.
 
It added: “Based on current market conditions and normalised customer buying behaviour, we anticipate another year of financial and strategic progress in 2025, in line with market expectations.
 
“This guidance reflects continued organic growth for Apparel and Footwear, in line with the medium-term growth targets for these divisions. Organic growth in Performance Materials is expected to be modest with no expected recovery in the America’s Yarns. Margins in 2025 should benefit from further growth, improvement in Performance Materials and the final benefits from strategic projects, which will be balanced in part by some targeted reinvestment to drive long term growth initiatives.”