Retail footfall rose year on year in January for the first time since 2016, although the boost was likely due to Brits delaying festive spending in favour of discounted goods in the new year sales.
Footfall rose by 1.4 per cent in January 2025 compared to 2024 in all UK retail destinations, according to data from MRI Software.
This was led by a 1.8 per cent boost in shopping centre footfall, followed by a 1.4 per cent rise in retail parks and a 1.1 rise in high streets.
This is the largest year-on-year increase – discounting lockdowns – since January 2016, when footfall rose by 1.2 per cent for the same time period.
However, the increase in footfall may be less positive for retail than it seems.
Recent data from advisory firm BDO showed that while in-store sales grew by 3.2 per cent in January – matching MRI’s data – there was a heavy reliance on discounted purchases.
Weak growth in the run-up to Christmas, coupled with higher spend and footfall in January, suggest that Brits may have been waiting for January discounts, Sophie Michael, head of retail and wholesale at BDO, said.
“January trading… requires heavy encouragement through discounting; this delayed spending will no doubt have a significant impact on already-thin margins,” Michael said.
“The sector has been challenged for some time by the impact of significant cost increases, which will continue to mount throughout the year, particularly post the implementation of the changes in the budget this April,” she added.
MRI similarly suggested that as we head into February, the impact of the Autumn Budget is “likely to start being felt by both consumers and retailers alike”.
Retail faces a significantly higher bill this Spring due to a combination of higher business rates, higher wage taxes and a new packaging tax.
A small number of brands have recently announced high street store closures, and MRI said it expected many more to raise prices in the coming months.
Around two thirds of CFOs have said their business will raise prices as a result of higher wage bills, according to the British Retail Consortium.