Year on year footfall rises in January but retail vacancies could rise to 15% as discounts negate improvement

4th February | shoppers | The number of shoppers in January climbed 1.2% compared to the same period in 2008, but any sales improvement off the back of more shoppers will be offset by the heavy discounting that attracted customers into stores.

Research firm Experian’s Retail Footfall Index showed January shopper numbers fell by almost a quarter compared to December 2008 – further evidence that pre-Christmas promotions are prompting shoppers to spend before the traditional January sales period.
 
With increased sales achieved at the expense of margin, Experian says the number of retail vacancies will rise to 15 per cent by the end of 2009, amounting to a total of 135,000 vacant retail outlets. This would represent an average vacancy rate of 12% for 2009, which is the highest level of retail vacancy since records began.

However, Experian’s weekly figures showed the end of January to be an improvement on earlier in the month. In the week to 1st February, year on year UK shopper numbers climbed 3.75%, with a 5.89% rise at department stores and a 1.92% increase on retail parks.