Retailers endure gloomy August

04/09/2007

Retailers have suffered a dismal August, according to new figures recording a fall in shopper numbers.

The latest Retail Footfall Index (RFI) from Footfall has revealed a 6.9% decrease in shopper numbers compared to August last year.

The organization described the findings as an ‘unpalatable, though not necessarily an unexpected, message’, and noted that the bad weather and interest rate rises have had a negative effect on the number of shoppers.

Martin Davies, Footfall spokesperson, said that it was the combination of the factors that made August such a bad month for retailers, commenting that ‘they combine to create higher degrees of uncertainty and unpredictability across the retail landscape.’

This August has followed two months of less significant declines in shopper numbers. The increasing sophistication of consumers has also had an impact, according to Davies:

“The fickle behaviour of consumers is often cited as a cause of declining visitor numbers; but in reality, so many shoppers are now more savvy and streetwise in how, where, when and how often they shop. The result is that the link between visitor numbers and sales is less clear cut than before.”

The organisation also noted that retailers have little to look forward to, with spending expected to slow further as interest rate rises continue to squeeze budgets.

Davies added: “We are now in the gulf period following August’s decline and the long awaited start of the Christmas surge. During this period, the peculiarities of Britain’s ever changing shopper behaviour will be firmly under the microscope.”