Skip navigation
Skip navigation
You are using an outdated browser. Please upgrade your browser.

retailers hoping for a repeat of the positive impact of the Royal Wedding on shopper numbers were left disappointed

The Retail Traffic Index (RTI), which monitors the volume of shoppers in non-food stores across the UK, shows that retailers have The Queen’s Diamond Jubilee celebrations to thank for a small upturn in their June footfall, but this was short-lived as there was no similar three-week mini-bounce that followed the Royal Wedding in 2011.

Compiled by Ipsos Retail Performance, the RTI also highlights that summer sales towards the end of the month encouraged shoppers to visit their local high street, but the two weeks in mid-June were “business as usual” as many consumers continue to be wary of their expenditure on goods and services.

“In the current climate, I’m sure many retailers would settle for the level of footfall they experienced in June,” comments Dr Tim Denison, Head of Retail Intelligence at Ipsos Retail Performance. “As predicted in the previous month’s RTI forecast, the Jubilee week - with many people electing to take the whole week off - resulted in footfall of 5.5% above levels for the same week of 2011.”

In some parts of the country, this welcome boost was far greater, particularly in the North of England (+8.3%), and London and the South East (+7.7%).

However, retailers hoping for a repeat of the positive impact of the Royal Wedding on shopper numbers were left disappointed. Low levels of footfall following the Jubilee week are most likely attributable to the miserable weather during the middle of the month as well as consumers ongoing financial concerns. After a quiet fortnight, the month ended strongly as retailers put up their “Sales” signs in a bid to stimulate interest and demand.

“Figures from PwC suggest that slightly more stores were holding sales, with 73% of retailers selling goods at sale prices at the end of June compared to 70% last year,” explains Dr Denison. “As a consequence, the week commencing the 24th June was the second busiest of the year so far (after Easter), and only marginally down (-1.4%) on the corresponding week of 2011. In the Midlands footfall flourished beyond elsewhere, registering a 0.8% increase on 2011 for the week.”

As the two weeks between the Jubilee and the summer sales were much in line with the underlying trend, it is difficult to be anything but circumspect about the prospects for UK retailers in July.

“The summer sales have started strongly, but July’s footfall will be conditioned by how engaged shoppers remain with the deals and how much stock retailers have to shift,” adds Dr Denison. “With the poor summer weather, there is some hope that sales will help shift summer merchandise.”

The next major UK event – the 2012 Olympic Games - commencing at the end of July, is likely to have a positive impact on footfall for retailers. However, the interim assessment remains pretty bleak. Economic conditions remain largely much unchanged. Inflation has eased (CPI +2.8%), but it is still above average earnings (+1.9%) so disposable income is still dropping, albeit at a slower rate.

“The economy remains disappointing, and with global uncertainties rising again, consumer confidence remains very low,” says Dr Denison. “Events of the summer may help to energise shoppers over the odd few weeks, particularly if the weather improves, but it's going to take genuine economic growth to shift sentiment and belief in personal finance improvements. Unfortunately, there is little sign of this yet.”

Ends

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals.

Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world’s third largest market research company.

With offices in 84 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management. Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1.140 billion ($1.6 billion U.S.) in 2010.

Visit www.ipsos.com to learn more about Ipsos’ offerings and capabilities.



About Ipsos Retail Performance

Ipsos Retail Performance provides footfall monitoring solutions, shopper tracking systems and in-store behavioural research to retailers worldwide. Its core products - Shopper Count, Shopper Interact and Shopper Engage – scientifically measure all aspects of a shopper experience from store entry to exit. It supplies national and international retailers with essential business metrics to drive accountability and performance improvement.

Ipsos Retail Performance is home to the Retail Traffic Index series, which for over 10 years has been the industry’s leading tracker of national, regional and sector retail footfall trends. It is also co-founder of the KPMG/Ipsos Retail Think Tank, offering thought leadership on the state of retail health and the future of retailing.

More information on Ipsos Retail Performance can be found at www.ipsos-retailperformance.com

For general information relating to Ipsos Retail Performance, email info.rp@ipsos.com

Ipsos Retail Performance Limited is registered in England and Wales under number 3552625 with its registered address at Minerva House, 5 Montague Close, London, SE1 9AY, UK. Ipsos Retail Performance is a wholly owned subsidiary of Ipsos.
MEDIA enquiries (Ipsos Retail Performance) to:

Glen Goldsmith
2thefore
Tel: +44 (0)1483 811 234 / 07812 766 338
email: glen@2thefore.co.uk

This press release was distributed by ResponseSource Press Release Wire on behalf of 2thefore in the following categories: Home & Garden, Women's Interest & Beauty, Food & Drink, Personal Finance, Business & Finance, Travel, Media & Marketing, Retail & Fashion, Public Sector, Third Sector & Legal, Construction & Property, for more information visit https://pressreleasewire.responsesource.com/about.