Footfall declines in October as cost-of-living impact grows

October footfall was 1.3% lower compared to the same period last year, highlighting the worsening impact of the cost-of-living crisis, according to the latest MRI Software data. This was the first annual drop in footfall since April 2021.

Overall footfall declined 0.2% in October compared to September, following a 2.8% drop in September from August.

High streets saw a 1.1% decline in October, while retail parks and shopping centres saw 0.5% and 0.9% rises respectively.

Footfall in October was affected by rail strikes and stormy weather but MRI Software said there was a “welcome boost” in footfall in the final week when footfall rose 9% due to the school half-term.

Annual footfall in high streets and shopping centres declined 2% and 1.8% respectively but rose 0.8% in retail parks.

The gap from pre-pandemic footfall narrowed slightly to -10.8% in October from -10.9% in September.

MRI Software managing director for footfall analytics James Massey said: “The impact of the cost-of-living on consumers’ spending power became even more evident in October as footfall dropped by -1.3% from last year across all UK retail destinations. This is the first annual drop in footfall witnessed by the retail intelligence experts at MRI Software since emerging from the depths of the pandemic back in April 2021.

“While reports show that inflation rates are slowing, this doesn’t negate the economic challenges facing consumers such as growing household bills in general but, more specifically, higher energy bills as we head into winter. 

“For many, fixed-rate mortgages are also coming to an end which means an increase in borrowing further impacting monthly disposable income.

“With less than eight weeks until Christmas, attention now turns to how the retail sector will fare this festive season as Gfk’s Consumer Confidence Index highlighted a fall in consumer confidence by nine points to -30 from September indicating that the cost of living crisis is indeed affecting consumers’ ability to spend. 

“Further supporting this, MRI Software’s Insights from the Inside, which is a weekly survey of its retailers, revealed that 64% of retailers anticipate sales in November to be lower this year compared with last year as shoppers curb spending.

“However, retailers have an opportunity to be creative in enticing consumers into their bricks-and-mortar destinations over the festive period offering memorable experiences and the chance to snap up some bargain purchases amidst the cost-of-living crisis and spending constraints.”