Retailers saw a disappointing dip in footfall last month, with trade associations calling on the government to increase support for the retail sector in 2025 to avoid another lacklustre trading year.
In the British Retail Consortium (BRC)’s official figures for December, retail footfall dropped by an average of 2.2%, year-on-year.
Looking at the data broken down by location, footfall on high street retail stores decreased by 2.7%, while footfall in shopping centres fell by 3.3% year-on-year. The only location that remained flat was retail parks, which saw a 0% change.
Helen Dickinson, CEO of the BRC, said the disheartening figures “capped a disappointing year for UK retail footfall”. She continued: “This means 2024 is the second year in a row where footfall has been in decline. High streets and shopping centres were hit particularly hard throughout the year as people veered towards retail parks to take advantage of free parking and the variety of larger stores.
“Even the Golden Quarter, typically the peak of shopping activity, provided little relief, with footfall down over the period. While the Black Friday weekend delivered more promising results, they were overshadowed by a lacklustre festive season. Shopping habits have been changing fast and customers are increasingly looking for more experiential shopping, as well as a variety of cafes, services and things to do.
Similarly, Andrew Goodacre, CEO of Bira, warned: “These figures paint a worrying picture of the challenges facing independent retailers. The decline in footfall during the crucial Christmas trading period is particularly concerning, as this is typically when retailers need to generate the revenue that will see them through the quieter months ahead.”
In light of the footfall decrease, both Dickinson and Goodacre urged the government to increase support for the retail sector for 2025, as the current figures paint a worrying picture for independent retailers in the year ahead.
Helen Dickinson said: “Unfortunately, investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centres. The Government’s proposals to reform business rates may ease the burden for some retailers, but it is vital that, ultimately, no shop ends up paying more in rates than before. With retailers facing £7 billion in additional costs this year from increased tax and regulations, the changes to the business rates system must be made in way that supports retail investment and growth in the years ahead.”
Andrew Goodacre added: “Looking to 2025, we see little reason for optimism unless the government takes decisive action. With retailers facing increases in National Insurance contributions, National Living Wage, and business rates, many independent stores will struggle to maintain viability. We urgently call on the government to reconsider the planned business rates increase for small retailers – this could be the difference between survival and closure for many independents on our high streets.”
In October last year, the heads of more than 70 retail business wrote to the UK chancellor, Rachel Reeves, asking for a significant change to business rates paid by retailers, in a scheme organised by the BRC.
