5 July 2006
Shopper numbers were up by 2.1% on May, but down somewhat more problematically by 7.2% against June 2005.
Retail footfall levels slumped noticeably in the two weeks in which the England games fell on a Saturday afternoon '" normally the busiest shopping time of the week. For w/c 4th June the RTI fell by 8.7% year-on-year and in the quarter-finals week, w/c 25th June, shopper numbers were down by 10.1% against June 2005.
Dr. Tim Denison, Director of Knowledge Management at SPSL said; 'here's a chance that some retailers might be accused of overplaying the 'orld Cup effect'when they eventually comment on their summer trading. However, the RTI figures, particularly for the weeks of the big England games, do show that the tournament has had a significant impact on June performances.
'on-food retailers are faced with ever tougher competition for a significant share of people's recreational and leisure time, particularly in light of everyday work/life imbalances. Such has been the rise in personal wealth and growth in spending over the last decade, that there is simply not the inherent need or desire to shop so voraciously nowadays as they'e already got everything. This, together with the growing role that food retailers play in non-food sales, presents a significant challenge to the specialists.
'hen faced with the choice, many householders in the UK are happy to substitute their normal shopping trips with box watching if the draw is strong enough. This has been true during times of the football World Cup. The main influence so far was felt on two days. On Saturday 10th June, when England played Paraguay, shopper numbers across the UK were down 13.7% against the previous Saturday (4th June). On the final day of the England team's tournament, Saturday 1st July, the corresponding figure was 16.7% lower than the same day of the previous week (24th June).
'ome sectors, such as the home entertainment consumables '" CDs, DVDs and the like, have suffered 'ouble whammies' with music and film companies electing to delay launches until the tournament is over.
'etailers will not be surprised by the June figures, but, like football supporters around Europe, they will be living on their nerves. Clearly whilst the World Cup has had an impact, there is still a lingering frailty in consumer confidence and retail activity. Heavy promotion and deep discounting will invariably be part of 'ummer 2006'
'here was a time when the shops could indulge in two two-week Sales a year. They were major events in the retail calendar, for shoppers and retailers alike. Those days seem long gone. The 'uly Sale'now invariably begins in June and is likely to run into August. The fact that EDLP (Every Day Low Prices) has become part of the language of shopping is symptomatic of the every day benevolence that is now embedded in people's expectations of shopping.
'hese are exciting times for retailers. By past standards, householders still have high levels of disposable income, but they are electing to be more discerning in how they spend it. The quest for every retailer is to re-invent the ways in they can win the same stake of consumer spending that they have enjoyed in the past. Not all will succeed, but those that do will raise the bar for the future.'