Retail FootFall Index Comment - April 2007

Retail FootFall Index - UK National Monthly:

Change for April 2007 -2.0%

Change for April year on year: -9.5%

The two percent dip in the month on month Retail FootFall Index between March and April occurred in a period when footfall has traditionally subject to relative stability. However as we are now entering the period when historically the FootFall index begins its summer spiral, it could be argued that the unusually warm weather has already precipitated the summer fall , as large numbers of Britain’s shoppers opt for outdoor or leisure activities as opposed to shopping.

The underlying trend remains as we have commentated for the past six months. Britain is increasingly becoming a nation of savvy shoppers with a wide array of channels and venues as opposed to a nation of shopkeepers. They may not be spending less in high streets and shopping centres but they have proved that their fickle and unpredictable shopping behaviour is not going to disappear.

Additionally, lower shopper numbers are unsurprising as consumers absorb the impact of January’s increase in interest rates. And with the likelihood of a further increase next week, and continuing speculation about further increases over the next six months, retailers and shopping centre owners will be mindful of consumers spending priorities as we approach a succession of bank holidays typically associated with either gardening or visits to the coast. Look out for increased advertising, promotions and a range of seasonal offers.

Our varied retail landscape means that there is no such thing as a typical town centre or shopping centre, so the national figures mask a growing trend- shopping venues that punch above the prevailing trend. How do they do it? For many, it’s a better understanding of customers’ requirements and how centres have matched their tenant mix more closely to what shoppers expect to see. As the barbecues come out of the garden shed this weekend, keeping abreast of shopper’s needs and aspirations and how to market to them will remain high on the retail agenda .

01/05/2007