A “drab” December has capped a disappointing year for retailers with warnings Britain’s high streets face a “challenging” year ahead.
Total footfall last year was down 2.2% on the year before, according to figures published by the British Retail Consortium (BRC) on Friday (January 3).
Even the Golden Quarter peak of shopping activity before Christmas provided little relief, with shopper visits down 2.5% over the period on 2023, according to the BRC’s Sensormatic footfall monitor.
The BRC figures show Northern Ireland saw the biggest decline at 5.8%, followed by Wales, down 2.6%, England (2.1%) and Scotland (1.5%).
Richard O’Connor, director of floor mat and safety product firm First Mats, told Express.co.uk the shift from high street to cheaper online sources continues, but even internet retailers are feeling the strain.
He said while the high street struggles with falling footfall, online businesses such as his own face competition from ultra-low-cost platforms such as Temu and Amazon, making it harder for smaller retailers to compete.
Mr O’Connor said: “Ultimately, retail confidence hinges on consumer spending power, which is being eroded by high inflation, stagnant wages and increasing living costs.
“Coupled with tax rises that will push up costs and stifle employment growth, the outlook for 2025 feels challenging.”
The small business owner said that to revive confidence, retailers need a stronger economic environment with growing disposable incomes so both high street and online retailers can thrive side by side.
He said: “The Labour Government must also actively consult with business leaders across the retail sector to develop policies that support growth and address the challenges we face.”
Beth Hillier, owner of fashion retailer Aloft, which has outlets in Salcombe and Padstow, said her sales over Christmas were very different compared to previous years.
She said fewer people are spending money and purchases seem “more considered and less frivolous”. Ms Hillier added: “There’s plenty of people around browsing, but we have definitely seen a decline in sales. There’s not much confidence out there right now.”
Barry Whitehouse said his art materials and tutoring business in Banbury took just £25 on December 27 during one of his quietest Christmases.
The owner of The Artery said: “We saw a much quieter Christmas period than usual. Often November is a very busy month, but this year it was just like any month over summer. We thought people were just Christmas shopping later, and that December would pull it out of the bag.
“That didn’t happen either so all our hopes fell on Christmas Eve. This turned out to be one of our quietest Christmas Eves on record.
“We are a very small, niche shop so don’t have huge sales figures, but even in comparison to our previous 13 years in business, this Christmas has been one of the quietest we’ve known.”
The BRC said high streets and shopping centres were hit particularly hard throughout last year as people took advantage of free parking and larger stores at retail parks.
Helen Dickinson, the BRC’s chief executive, said: “A drab December which saw fewer shoppers in all locations capped a disappointing year for UK retail footfall.
“Shopping habits have been changing fast and customers are increasingly looking for more experiential shopping, as well as a variety of cafes, services and things to do.
“Unfortunately, investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centres.
“The Government’s proposals to reform business rates may ease the burden for some retailers, but it is vital that, ultimately, no shop ends up paying more in rates than before.”
Andy Sumpter from Sensormatic said as footfall limped towards the festive finish line, December’s lacklustre performance compounded a disappointing end to 2024, marking the second consecutive year of declining store traffic.
He added: “Retailers will now need to look afresh to 2025 and chart a course to adopt innovative strategies to reverse this trend or maximise the sales potential of fewer visitors, finding new ways to make each store visit count.”
The Department for Business and Trade has been approached for comment.