For the first time since 2016, retail footfall in January saw a year-on-year increase, likely due to º£½ÇÊÓƵ consumers delaying their festive spending to take advantage of discounted goods in the new year sales.
According to data from MRI Software, footfall across all º£½ÇÊÓƵ retail destinations rose by 1.4 per cent in January 2025 compared to the same period in 2024, as reported by .
Shopping centres led the way with a 1.8 per cent increase in footfall, followed by a 1.4 per cent rise in retail parks and a 1.1 per cent increase on high streets.
This marks the largest year-on-year increase, excluding lockdown periods, since January 2016 when footfall increased by 1.2 per cent.
However, this increase may not be as positive for the retail sector as it appears. Recent data from advisory firm BDO indicates that while in-store sales grew by 3.2 per cent in January, mirroring MRI's data, there was a heavy reliance on discounted purchases.
The weak growth leading up to Christmas, coupled with higher spending and footfall in January, suggests that º£½ÇÊÓƵ consumers may have been waiting for January discounts, according to Sophie Michael, head of retail and wholesale at BDO.
"January trading... requires heavy encouragement through discounting; this delayed spending will no doubt have a significant impact on already-thin margins," said Michael.
She added: "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."
MRI similarly indicated that with February approaching, the effects of the Autumn Budget are "likely to start being felt by both consumers and retailers alike". Retailers are facing notably increased costs this Spring due to a combination of higher business rates, elevated wage taxes, and the introduction of a new packaging tax.
A few brands have recently declared high street store closures, and MRI anticipates a significant number of businesses to hike prices in the upcoming months. According to the British Retail Consortium, about two thirds of CFOs have stated their business will raise prices consequent to rising wage bills.
