Retailers hit 'bump in the road' as footfall drops in June

• Footfall in June dropped 0.8% year on year
• Seasonal uplift in shopper numbers fails to materialise
• But Ipsos says retailers have “plenty of opportunity” in third quarter

Footfall did rise 3.8% month on month, but the expected “seasonal uplift” of around 7% failed to materialise, according to the Ipsos Retail Performance Retail Traffic Index.

It said consumers had become “desensitised” to summer Sales and are now aware that “bargains were there to be had all year round”.

It meant in the second quarter of 2015 Ipsos reported footfall edged up just 0.1% compared with the same period last year and below the 2.7% increase recorded in the first quarter.

The fall in shopper numbers was most apparent in the Southwest of England and Wales, where the year-on-year comparison swung from a 2.9% rise in the first quarter to a 4% fall in the second three-month period.

The North was the only region to record a rise in footfall compared with June 2014, as shopper numbers jumped 3.3%. Footfall in the North was also up 3.7% on a monthly basis.

‘Bump in the road’

Ipsos Retail Performance director of retail intelligence Tim Denison described the drop in footfall as “a bump in the road” after retailers had built “solid momentum” in previous months.

Denison said: “Right across the board we are seeing positive sentiment and strong growth indicators in the UK economy. GDP is projected to be stronger in quarter two than quarter one, real wages are growing at their fastest level since 2007 and 425,000 jobs have been created in the last 12 months.

“With the economy seemingly set to continue to improve throughout the year, there is plenty of opportunity in quarter three”

Tim Denison, Ipsos Retail Performance

“Yet the footfall data suggests that non-food retailing is struggling to achieve its expected share of consumers’ disposable income.

“The first fortnight of the summer Sales have failed to deliver a year-on-year boost in store footfall, signifying that shoppers are becoming desensitised to full-blown sales, conscious that bargains are there to be had all the year round nowadays.”

Denison added that retailers had reason to be optimistic heading into the second half of the year. He said: “With the economy seemingly set to continue to improve throughout the year, there is plenty of opportunity in quarter three.

“Retailers will need to continue to be on their mettle in the coming months to win their share of wallet and make consistent progress during the upturn. This will require high energy, more constant engagement and retail experiences that stimulate and excite shoppers.”