High street retailers have been dealt a further blow as the number of shoppers fell in a ‘drab’ run-up to Christmas.
Shop visits dropped 2.2 per cent in December compared with a year earlier, capping a disappointing performance in the so-called ‘golden quarter’, which is the peak trading period in the three months before Christmas.
In the quarter as a whole, the number of shoppers was down 2.5 per cent, according to the British Retail Consortium (BRC). It comes in the wake of a report warning that shop closures are expected to accelerate during 2025.
BRC chief executive Helen Dickinson said: ‘A drab December which saw fewer shoppers in all locations capped a disappointing year for UK retail.
‘Habits have been changing fast and customers are increasingly looking for more experiential shopping, as well as a variety of cafes, services and things to do.
‘Unfortunately, investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centres.’
High Street woes: Shoppers take to Oxford Street for the Boxing Day sales. Retailers reported footfall dropped 2.2% in December compared with a year earlier
Experts say consumer sentiment has also been damaged by the dismal turn the economy has taken under Labour.
Clive Black, retail analyst at Shore Capital, said: ‘The British shopper appears cautious, chiming with a weakening macroeconomic backdrop driven by the Chancellor’s narrative and Budget.’
The BRC figures showed the number of shoppers in 2024 fell 2.2 per cent on the year before, a second year in a row of decline.
High streets and shopping centres were hit particularly hard as people veered towards retail parks to take advantage of free parking and the variety of larger stores, the BRC said.
Dickinson added: ‘The Government’s proposals to reform business rates may ease the burden for some retailers, but it is vital that, ultimately, no shop ends up paying more in rates than before.’
Last week, analysts Rendle Intelligence suggested Christmas appeared to have been ‘disastrous’ for retailers, with 11.4 per cent fewer shoppers year-on-year over the final full week before Christmas.
Even on Super Saturday – the final Saturday before Christmas Day, which is typically the peak shopping day of the year – the figure was just 4.1 per cent higher than the previous Saturday, and only 0.9 per cent higher than the same Saturday in 2023.
And a gloomy report yesterday predicted that 17,350 stores will close this year, after 13,479 shut for good in 2024.
The Centre for Retail Research said 2025 will be a tougher year for retailers than 2022, when government support following the pandemic was withdrawn.
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