Bargain-hunting shoppers give retailers welcome boost as sales surge in January

January saw a surge in shoppers looking for deals, providing a much-needed boost for retailers after a lacklustre Christmas season. Total UK footfall rose by 6.6% year on year last month, according to the latest figures from the British Retail Consortium (BRC)-Sensormatic,. This marks a significant rebound from December, when there was a 2.2% drop in shopper numbers compared to the previous Christmas. High streets experienced a 4.5% increase in footfall, while retail parks and shopping centres enjoyed rises of 7.9% and 7.4%, respectively.

All four UK nations reported year-on-year increases in footfall: Wales led with an 8.5% rise, followed by England at 7.4%, Northern Ireland at 3.5%, and Scotland with a 1% improvement. The first week of January saw a particularly sharp spike in store visits as consumers flocked to the sales, especially benefiting shopping centres. Despite snowy conditions and disruptions from Storm Eowyn, footfall remained robust across major UK cities throughout the month. BRC chief executive Helen Dickinson commented on the positive trend: "Improved shopper traffic is welcome news for high streets following a particularly difficult golden quarter to end 2024, and low consumer sentiment to start the year.

"Retailers want to invest more in stores and staff to enhance the shopping experience for customers and help to grow the economy, but the swathe of additional costs from April will limit investment and lead to job losses and higher prices at the tills.". Andy Sumpter of Sensormatic remarked optimistically about the increase in footfall: "After a dreary December, retailers will welcome January’s footfall jump." He added a cautious note, saying: "While welcome, after months of erratic and constrained footfall, the jury’s out as to whether January’s store performance signals the start of a sustained high street revival or if it will be a flash in the pan come February.

Mr Sumpter also highlighted the industry's challenges ahead: "And, even if shopper traffic recovery has finally turned a corner, the challenge for retailers will be solving the next conundrum; how they balance enhanced footfall – which requires optimised store staffing to convert into sales – and the significant rises to labour costs borne out of the Budget on the one hand, with consumer appetite for discounts – a long-term margin-eroder – on the other, which will not be an easy circle to square.".