Physical retail and the footfall question | WARC | The Feed
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Physical retail and the footfall question
Recent surveys have indicated that UK footfall is edging upwards, but it remains well below pre-pandemic levels and any improvements are at risk from the cost-of-living crisis and the fact that many people continue to work from home for at least part of the week.
The numbers
- Total UK footfall decreased by 12.5% in May (Yo3Y), a 0.6 percentage point improvement from April, according to British Retail Consortium (BRC) figures. High streets performed better than retail parks or shopping centres.
- Total UK footfall increased by 6.9% over the recent Jubilee weekend, compared with the average for May 2022. Total UK footfall for the whole week increased by 17.1%, compared to the average for May 2022.
- Figures from Transport for London (TfL) show journeys on London Transport running at around 85% of pre-pandemic levels.
- Recent data from the Office for National Statistics (ONS) indicates 14% of working adults working exclusively from home while 24% engaged in hybrid working practices.
Why it matters
Diane Wehrle, chief executive of the Springboard consultancy, has warned that if current work-from-home patterns continue, footfall is likely to permanently remain 10% lower than pre-COVID. That will result in “permanent scarring and certainly permanent change in the way we shop” she told the Daily Telegraph.
One possibility is new shopping behaviours, as people come to city centres at different times than at present. TfL data suggests that the number of people using the Tube in the late evening is almost back to normal even as morning rush-hour trips stand at half their previous level.
Key quote
“There's a real key change happening around retail, but it's not necessarily wholly detrimental. It does mean that retailers need to be aware of the changes that are happening” – Diane Wehrle, chief executive, Springboard.
Sourced from Daily Telegraph, Financial Times, BRC, ONS, TfL [Image: Getty images]
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