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Shoppers 'deserting High Street' Shoppers 'deserting High Street'
(about 7 hours later)
Consumers continued to desert the High Street in March, a study has found.Consumers continued to desert the High Street in March, a study has found.
According to the latest Experian Footfall UK National Index, shopper numbers fell 1.7% across the UK.According to the latest Experian Footfall UK National Index, shopper numbers fell 1.7% across the UK.
Wales and the South East were the worst hit regions, with shopper numbers down 7.13%. Only the North East, South East and East Midlands recorded a rise. Wales and the South West were the worst hit regions, with shopper numbers down 7.13%. Only the North East, South East and East Midlands recorded a rise.
While Experian admitted an early Easter in 2008 may have affected the figures, it added that comparative Mother's Day sales were down 1.7% this year.While Experian admitted an early Easter in 2008 may have affected the figures, it added that comparative Mother's Day sales were down 1.7% this year.
"Our FootFall data and latest ONS sales figures (showing a 1.9% fall in spending volumes in February) confirm what we have long suspected - that consumers are cutting back on their spending and the growth in sales during January was mainly the result of heavy discounting," said Sunita Bali, Experian's senior UK economist."Our FootFall data and latest ONS sales figures (showing a 1.9% fall in spending volumes in February) confirm what we have long suspected - that consumers are cutting back on their spending and the growth in sales during January was mainly the result of heavy discounting," said Sunita Bali, Experian's senior UK economist.
Gloomy outlookGloomy outlook
Looking ahead, the picture is unlikely to improve, with Experian forecasting a 1% contraction in retail sales in 2009, the first full-year decline since 1991.Looking ahead, the picture is unlikely to improve, with Experian forecasting a 1% contraction in retail sales in 2009, the first full-year decline since 1991.
The group also reiterated its warnings that the country's High Streets face becoming ghost-town areas.The group also reiterated its warnings that the country's High Streets face becoming ghost-town areas.
Across the UK, 15% of retail floor-space is now unoccupied, with some towns recording a vacancy rate of 39%, Experian added.Across the UK, 15% of retail floor-space is now unoccupied, with some towns recording a vacancy rate of 39%, Experian added.
Fragile consumer sentiment, rising costs and increasing rent bills are just some factors pushing retailers out of business.Fragile consumer sentiment, rising costs and increasing rent bills are just some factors pushing retailers out of business.
In an effort to stem the tide of closures, the Local Government Authority (LGA) recently called for urgent action, including allowing a council to take over empty properties, a cut in VAT for refurbishing shops and giving councils the power to offer breaks on rates to struggling small businesses.In an effort to stem the tide of closures, the Local Government Authority (LGA) recently called for urgent action, including allowing a council to take over empty properties, a cut in VAT for refurbishing shops and giving councils the power to offer breaks on rates to struggling small businesses.
Without action, experts suggest the rise of supermarkets and out-of-town shopping centres could sound the death-knell of the traditional town centre.Without action, experts suggest the rise of supermarkets and out-of-town shopping centres could sound the death-knell of the traditional town centre.
However, despite the dire warnings for the High Street, retail parks fared well in the latest Experian study.However, despite the dire warnings for the High Street, retail parks fared well in the latest Experian study.
Unseasonably warm weather prompted more people to head to retail parks to snap up DIY equipment and garden furniture, with shopper numbers rising 0.5% in the sector.Unseasonably warm weather prompted more people to head to retail parks to snap up DIY equipment and garden furniture, with shopper numbers rising 0.5% in the sector.