Why UK retail footfall was ‘increasingly fluid’ over August

Last week, the latest MRI Software data revealed that UK retail footfall was becoming “increasingly fluid,” as the sector witnessed a varied picture over August.

Total footfall from 2 to 30 August nudged up 0.1 per cent month-on-month and 1 per cent year-on-year.

While shopping centres saw footfall rise 2.3 per cent and retail parks climbed 0.8 per cent, the high street declined 1.2 per cent over the period.

The figures were highly impacted by the fifth UK heatwave of the year last month, as well as back to school shopping, which “helped UK retail destinations during a disruptive month”.

“Footfall is becoming increasingly fluid”

It’s safe to say that the weather has had a significant impact on the UK’s bricks-and-mortar stores in recent weeks.

High streets were hit by the heat on 13 August, when footfall plunged 9.5 per cent week-on-week and 8.6 per cent year-on-year. Despite this, coastal destinations saw visitors increase 2.4 per cent week-on-week.

Contrastingly, as heavy rain and flooding arrived in the UK during the last week of August, there was a 3 per cent week-on-week decline in high street footfall.

Meanwhile, shopping centre visitors rose 2.4 per cent and retail park footfall was up 1.4 per cent.

Commenting on the data, MRI Software retail insights analyst Jenni Matthews explained: “Footfall is becoming increasingly fluid, with consumers quick to change their plans based on factors such as weather, convenience and local experiences.

“This is creating a growing gap between destinations that simply provide places to shop and those that provide compelling reasons to visit, making relevance and adaptability more important than ever.”

Speaking to Retail Gazette, Matthews says there are “a lot of external factors” behind this increasing fluidity, with “the biggest one being weather conditions”.

She highlights that coastal towns benefitted during the heat on 13 August because “consumers wanted to make the most of the sun” and “they probably wanted a cooler environment,” which was “to the detriment of high streets”.

However, she points out: “During the final week of the month, the heavy rain and flooding also had a negative impact on high street footfall.

“It’s becoming fluid in the sense that people are choosing where is most convenient for them to go, and what’s going to benefit them,” she says.

“When we say it’s becoming increasingly fluid, we’re seeing it move from destination to destination based on the consumer’s preference, depending on the external factors that are driving it.”

CI&T global director retail strategy and insights Melissa Minkow also says “there are several reasons” behind the fluidity.

“First, because consumers are such omnichannel shoppers now, they are moving between online and offline channels seamlessly,” she explains.

“This heightened accessibility, where retailers are available to shoppers via so many different avenues enables more flexible decision-making and fluctuating brick and mortar engagement. 

“Additionally, retailers are increasingly leveraging technology to update prices and offer more discounts in real-time, so shoppers are taking advantage of those deals as they come.”

“A compelling reason for people to visit”

Epos Now chief operating officer Richard Nolan argues that it is “no surprise footfall is becoming more fluid”. 

“This August alone saw shoppers pulled towards coastal spots during the heatwave, then away from high streets when the rain hit, demonstrating how dependent physical retail is on the weather,” he points out. 

“Add into that the cost-of-living pressures and the ease of online browsing, and you have a difficult landscape for businesses. 

“For brick-and-mortar retail, that unpredictability makes most parts of trade tougher, from marketing, staffing and stock, never mind selling, at the minute trade can swing high and low for reasons well outside their control.” 

However, he assures: “As ever, British retailers show themselves to be a resilient bunch, finding ways to make each visit count by staying upbeat and demonstrating the unmatched experience of a physical store.”

In a similar vein, Matthews says UK bricks-and-mortar retailers can adapt to the growing fluidity they’re seeing by “having a compelling reason for people to visit their destination”.

“That could be investments in activations or events. We’ve seen a number of shopping centers do a sort of seaside simulation this year as well and that’s a really great way to get shoppers into their destination.”

The importance of back-to-school shopping

Despite a challenging August, demand for back-to-school shopping provided UK retailers with “a boost,” with 50 per cent of store managers surveyed by MRI Software witnessing “momentum build throughout August”.

Matthews reaffirms that “it is an important factor” for UK retail stores.

“Families need to buy the clothing, footwear, stationery, and other essentials,” she says.

“These purchases generate additional visits to the retail, food, and leisure destinations.

“It could be an activity that’s done online, but there’s an element of children needing to be able to try on these items before they purchase them.

“Destinations that offer all of these stores under one roof or in one place will benefit from back-to-school shopping.”

Minkow agrees that the back-to-school shopping season is “extremely important” in driving footfall rises for physical UK retailers.

She adds that “price” is “a key differentiator in today’s hyper-competitive market,” meaning “in-store discounts will drive conversion”.

“In addition to being so price-sensitive, consumers are really solution-driven in their shopping pursuits,” she adds. 

“Retailers should ensure they have knowledgeable sales associates in stores ready to answer shoppers’ questions so they feel confident they’re buying the right products for their back to school needs. 

“Retailers could also offer special delivery services just for the back to school season, where if consumers spend a certain amount or buy certain quantities, the items will be available for delivery before school begins.” 

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