The number of people going to shops has fallen for the second year in a row, according to a leading data monitor, after the year ended on a “drab December” for retail.
Footfall dropped 2.2% in 2024, having also fallen in 2023, the British Retail Consortium’s (BRC) analysis of Sensormatic’s data found.
Experts said a combination of cost of living pressures, the rise of online shopping, low consumer confidence and bad weather were to blame.
Tom Rowley, owner of Backstory Bookshop in south London, said he has been trying to beat the slump by offering shoppers a drink as part of their shopping “experience”.
“People come here, pick up a whole pile of books, but then once they’ve done their Christmas shopping, we can reward them with a large glass of wine,” he told the .
“Sadly, you don’t get that through online shopping.”
Tom is not the only shop owner who is having to get creative to encourage customers.
Leanne Fridd, owner of Bookbugs and Dragon Tales in Norwich, told Radio 5Live’s Wake Up to Money that her bookshop has tried “a Santa’s grotto, and authors, and all sorts of other things to try and entice people in”.
However, despite her best efforts, she said “overall spend was down this year” even though footfall was “on par” with last year.
“We are really feeling it on the bottom line,” she added.
‘Dino day’ to draw in shoppers
For Jenny Fazackerley, owner of Jenny Stitches in Barrow, drawing shoppers in with events is something that happens all year around.
She and the other local firms in the town’s business improvement district (BID) have pooled money to put on events “at every school holiday and at every major event” in an effort to improve footfall.
The BID has hosted a soapbox derby, an autumn festival, and a “dino day”, where actors dress up as dinosaurs and walk around the town to entertain children.
The town was also the final destination of a bike ride in honour of Hairy Biker and local Dave Myers, who died in February last year.
The event attracted thousands of people to Barrow and a second ‘Dave Day’ bike ride is planned again for this year
Jenny said footfall has been good in 2024 as a result of all these events, but describes it as an “ongoing challenge” for the area.
‘A disappointing year’
While some shops and towns have fared better than others, the national picture is less rosy.
The figures for the final three months of 2024, which is usually the time of year when shoppers spend most, were also down on the same period last year by 2.5%.
“A drab December which saw fewer shoppers in all locations, capped a disappointing year for UK retail footfall,” said BRC chief executive Helen Dickinson.
The BRC has urged the government to reduce business rates, a tax on commercial buildings, to help retailers invest.
Retail experts pinned the drop on a combination of cost of living pressures, the continued rise of online shopping, and low consumer confidence.
Next week, big retailers will reveal how they have fared over the Christmas period, with Tesco, Sainsbury’s, Marks & Spencer, and Next all due to report after Lidl posted its results on Thursday.
“People are just being a lot more cautious about their spending,” said Catherine Shuttleworth, chief executive of Savvy Marketing.
She pinned the lack of consumer confidence on people “talking down the economy”. She also criticised decisions made in the Budget, such as the employer national insurance contribution rise.
A Treasury spokesperson told the “a thriving retail sector plays a crucial role in growing the economy and features at the heart of our communities”, adding it had introduced a 40% business rates relief next year and will cut rates “permanently” from 2026.
Russ Mould, investment director at AJ Bell, said things could improve for the retail sector in the year ahead if inflation and interest rates fall while the economy improves.
“You can construct a more optimistic narrative for 2025,” he said.
