Retailers supply grottos and wine to fight ‘drab’ December

The variety of individuals going to retailers has fallen for the second yr in a row, in accordance with a number one knowledge monitor, after the yr ended on a “drab December” for retail.

Footfall dropped 2.2% in 2024, having additionally fallen in 2023, the British Retail Consortium’s (BRC) evaluation of Sensormatic’s knowledge discovered.

Consultants mentioned a mixture of value of residing pressures, the rise of on-line buying, low shopper confidence and unhealthy climate had been responsible.

Tom Rowley, proprietor of Backstory Bookshop in south London, mentioned he has been attempting to beat the stoop by providing consumers a drink as a part of their buying “expertise”.

“Folks come right here, decide up an entire pile of books, however then as soon as they’ve achieved their Christmas buying, we are able to reward them with a big glass of wine,” he informed the BBC.

“Sadly, you do not get that by way of on-line buying.”

Tom is just not the one store proprietor who’s having to get artistic to encourage prospects.

Leanne Fridd, proprietor of Bookbugs and Dragon Tales in Norwich, informed BBC Radio 5Live’s Wake As much as Cash that her bookshop has tried “a Santa’s grotto, and authors, and all types of different issues to try to entice individuals in”.

Nonetheless, regardless of her finest efforts, she mentioned “general spend was down this yr” though footfall was “on par” with final yr.

“We’re actually feeling it on the underside line,” she added.

For Jenny Fazackerley, proprietor of Jenny Stitches in Barrow, drawing consumers in with occasions is one thing that occurs all yr round.

She and the opposite native companies within the city’s enterprise enchancment district (BID) have pooled cash to placed on occasions “at each faculty vacation and at each main occasion” in an effort to enhance footfall.

The BID has hosted a soapbox derby, an autumn pageant, and a “dino day”, the place actors gown up as dinosaurs and stroll across the city to entertain kids.

The city was additionally the ultimate vacation spot of a motorbike trip in honour of Furry Biker and native Dave Myers, who died in February final yr.

The occasion attracted 1000’s of individuals to Barrow and a second ‘Dave Day’ bike trip is deliberate once more for this yr

Jenny mentioned footfall has been good in 2024 on account of all these occasions, however describes it as an “ongoing problem” for the world.

Whereas some retailers and cities have fared higher than others, the nationwide image is much less rosy.

The figures for the ultimate three months of 2024, which is normally the time of yr when consumers spend most, had been additionally down on the identical interval final yr by 2.5%.

“A colorless December which noticed fewer consumers in all areas, capped a disappointing yr for UK retail footfall,” mentioned BRC chief government Helen Dickinson.

The BRC has urged the federal government to cut back enterprise charges, a tax on business buildings, to assist retailers make investments.

Retail consultants pinned the drop on a mixture of value of residing pressures, the continued rise of on-line buying, and low shopper confidence.

Subsequent week, huge retailers will reveal how they’ve fared over the Christmas interval, with Tesco, Sainsbury’s, Marks & Spencer, and Subsequent all on account of report after Lidl posted its outcomes on Thursday.

“Individuals are simply being much more cautious about their spending,” mentioned Catherine Shuttleworth, chief government of Savvy Advertising.

She pinned the shortage of shopper confidence on individuals “speaking down the financial system”. She additionally criticised choices made within the Funds, reminiscent of the employer nationwide insurance coverage contribution rise.

A Treasury spokesperson informed the BBC “a thriving retail sector performs a vital position in rising the financial system and options on the coronary heart of our communities”, including it had launched a 40% enterprise charges aid subsequent yr and can reduce charges “completely” from 2026.

Russ Mould, funding director at AJ Bell, mentioned issues might enhance for the retail sector within the yr forward if inflation and rates of interest fall whereas the financial system improves.

“You may assemble a extra optimistic narrative for 2025,” he mentioned.