major events
Returning to the number of people coming to shop, the BRC traces part of the problem to the fact that high street shops do not have the spare cash to invest in ‘experiences’ that entice consumers.
BRC CEO Helen Dickinson Says it’s partly to blame for high taxes and burdensome regulations. Retailers are currently fearing increases to employer National Insurance contributions and the minimum wage.
Dickinson says:
Shopping habits are changing rapidly and customers are looking for more experiential shopping as well as a variety of cafes, services and things to do.
Unfortunately, investment in town centers and high streets is held back by our outdated business rates system, which penalizes town and city centres.
The Government’s proposals to reform business rates may ease the burden for some retailers, but it is important that, ultimately, no shop pays more in rates than before.
As retailers face £7 billion of additional costs this year due to increased tax and regulations, changes to the business rates system must be made in a way that supports retail investment and growth in the years to come.
Markets have opened for trading on this cold Friday morning and we have a mixed picture across Europe:
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FTSE 100 is flat
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of france cac 40 is down 0.2%
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of spain ibex is up 0.1%
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from germany zetra dax is flat
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from Italy FTSE MIB is down 0.35%
Introduction: UK retailers suffer ‘disappointing year’ with 2.2% footfall decline
Good morning, and welcome to our comprehensive coverage of business, financial markets and the world economy.
We’re starting this Friday with disappointing news for high street shops British Retail Consortium (BRC)) There has been a 2.2% decline in viewership in December compared to a year ago.
That’s slightly better than the 4.5% decline in November, but it will provide little comfort to stores that were hoping for a year-end surge during the all-important Christmas shopping season.
BRC figures show that shopping centers were worst affected, followed by high street shops:
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high Street move decreased by Up 2.7% in December (year-on-year), up from -3.7% in November.
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shopping center move decreased by Up 3.3% (y-o-y) in December, up from -6.1% in November
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retail Park was a hiking trip unchanged Up 0.0% (year-on-year) in December, up from -1.1% in November.
Overall, this means that arrivals in the fourth quarter were down 2.5%, leading to a 2.2% decline in arrivals for the full year 2024 compared to 2023.
And although footfall is not an accurate guide to potential sales due to the surge in online shopping, it will raise concerns about retailers’ performance.
BRC CEO Helen Dickinson Said:
A dull December, which saw fewer shoppers across the board, ended a disappointing year for UK retail customers. This means that 2024 is the second consecutive year that the number of tourists has declined.
High streets and shopping centers were particularly affected throughout the year as people turned to retail parks to take advantage of the free parking and variety of larger stores.
Even the Golden Quarter, usually the peak of shopping activity, provided little respite, with footfall declining during the period.
While the Black Friday weekend delivered more promising results, they were overshadowed by the lack of a festive season.
agenda
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8.55 am GMT: Unemployment in Germany for December
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9:30 am GMT: UK mortgage approvals, net mortgage lending, consumer lending for November
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1:30 pm gmt: US ISM Manufacturing Index for December