While the next few years are expected to be tough for those working in the retail industry, recent figures have shown a turning point in the post-recession doom and gloom.
Camden High Street
Thanks to initiatives such as pre-Christmas sales and offering shoppers more for their money, total sales growth as reported by the BRC-KPMG Retail Sales Monitor hit a three year high last month.
There was further good news in terms of footfall, which picked up after a disastrous January decline of 4.6 per cent. Month on month high street footfall increased by 2.7 per cent between January and February when compared to the same period in 2011, with this year’s figures for February registering a 0.8 per cent rise in the number of shoppers taking to the streets when compared to the same month last year.
All in all, this allowed the high street to record its most successful period in terms of consumer numbers since December 2011. This is especially positive as the previous high took place in the peak Christmas shopping season, while February is not especially noted for a boost in consumer spending habits, indicating a positive step forward in consumer confidence.
Helen Dickinson, Director General of the British Retail Consortium (BRC), believes that the increase in footfall is a positive sign for retailers yet points out areas with high commercial property vacancy rates must combat this issue to fully profit from the increased enthusiasm in consumers.
She says; “Even though overall footfall is only marginally up on last year, the signs are that conversion rates were good.
“Compared against the widespread regional variations seen in January, it is really encouraging to see improvements in footfall across the board.
“However, the link between the number of shops and shoppers is plain to see; the lowest footfall was in the North and Yorkshire, which has England’s highest vacancy rate.”
The BRC/Springboard Monitor surprisingly showed that, for the first time in several years, the high street is now out-performing shopping centres and out-of-town retail parks. Shopping centre footfall dropped 1.6 per cent nationally, while out-of-town malls took a 1.5 per cent hit on their total number of visitors.
Diana Wehrle, Research Director of Springboard, believes that the rise in high street shoppers and drop in other retail areas could be due to the changes high streets around the country are making to appeal to a wider range of customers.
She says; “The disparity could be explained by the recent decline in multiples being primarily located in shopping centres and retail parks, with high streets offering a wider diversity.
“For the high street, one swallow does not make a summer, but these results might hint at the green shoots of recovery, or at least some stabilisation in the current environment.”
Do you think these statistics represent an upturn in fortunes for the high street or will they turn out to be yet another misleadingly optimistic indicator? Share your thoughts with us below.
