Saturday, July 16, 2011
SHOPPERS are spending more time in stores but are still keeping a tight hold on their money, according to two new unrelated indices.
The latest Experian Footfall Index has found a 0.2% increase in retail footfall from April to June versus the same period in 2010 — a small but significant increase following 14 consecutive quarters of declining numbers of people visiting shops.
However, while people are getting their retail appetite back, the CSO’s latest Consumer Price Index showed that low consumer confidence levels in June drove down the prices of clothing and footwear (-4.3%), furnishings (-2.6%), restaurants (-0.1%) and leisure (-0.6%).
Ireland’s retailers will take some heart from the 1.1% footfall increase for June recorded by business information services specialist Experian, but it is not reading too much into the overall 0.2% lift for the quarter.
Neil Fretwell of Experian Ireland said: "We know that it is still really tough out there, but this mild lift is at least a sign that there might be some positive news creeping back over the horizon.
"In the last few years, we have seen the occasional monthly lift, but this is the first time in 14 quarters that footfall has sustained itself over a three-month period.
"We only monitor the retail traffic on the high street, so our index doesn’t factor in people’s spending levels. This is not a huge swing, but it is encouraging."
Mr Fretwell said that Northern Ireland’s 2.9% upswing for the quarter was consistent with its stronger retail performances generally throughout the recent lean years. Read in tandem with the southern upswing, it may suggest better retail times ahead for the summer.
Experian Ireland’s head of sales Mark Anderson added: "After a long period of depressed shopping activity across the Republic of Ireland, there seems to be an emerging improvement in footfall, particularly when you compare the figures with the sharp declines witnessed in 2009.
"While retailers are still experiencing extremely tough trading conditions, the return to positive figures will be welcomed. The healthy figures surrounding the January sales, which saw an increase in recorded footfall by 1.3%, has been repeated with the summer sales."
Mr Anderson noted that, at 1.1%, June saw the strongest growth since January. He said the poor summer weather has helped, with people visiting shopping centres rather than the beach.
Local authorities in Limerick, Portlaoise and elsewhere have introduced trial free parking schemes in a bid to boost footfall on key shopping days. Meanwhile, the Northern Ireland Independent Retail Trade Association (NIIRTA) has launched an Independence Day initiative to get shoppers to visit smaller locally-owned stores in preference to the big multiples. The early feedback has been positive.
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