RTI Figures Show North/South Divide Continuing; Shopper Behaviour Changing

Surprising figures from the Retail Traffic Index (RTI) from analysts SPSL, now part of global research company Synovate, show that the number of people out shopping in February was actually 1.8% higher than in February 2007, but still 7.1% lower than in January this year.

SPSL’s Dr Tim Denison, a retail psychologist, explains; “February was billed to be a ‘graveyard’ month for retailers, especially after a slightly better than expected Christmas and a busy clearance fortnight afterwards. However, our figures show the month in a very different light. The high streets and shopping centres were not wastelands last month at all. Evidently people were still crossing shop thresholds.

“However, what we are possibly seeing here is the beginning of a subtle change in consumer behaviour. Now that the chips are down and people’s disposable income is noticeably being squeezed, it’s possible householders are putting more effort into getting the most for their scarcer, discretionary pound. This means visiting more shops, making more trips and, indeed, doing more research on-line to secure the best deal; knowing that there are many to be had. It is too early to know for certain if this is the start of a change in attitude and approach by shoppers but it is certainly possible that a new retailing scene is beginning to emerge on this changing economic canvas. 

“The BRC/KPMG sales monitor figures out at the start of next week should help us understand the figures a little better, but we shall need a few months’ run comparing the two datasets before we can be sure of the trend. We should also bear in mind that the first week of February 2007 saw heavy snowfall across the country. As a result shopper numbers for the same week this year were 4.9% greater, giving a considerable boost to the month as a whole.

 “One other developing trend; the North-South divide that we highlighted in January, continued throughout February. London and the South East recorded a year-on-year footfall rise of 6.8% in the month and in Wales and the South West the lift was even greater at 7.0%. In stark contrast, numbers in Scotland and Northern Ireland were down by 6.0% on 2007. Our numbers certainly tally with other robust regional datasets in retailing. It does appear that the slowdown is impacting different parts of the country either at different speeds or by different extents. Again, we need to wait to see exactly how the geographical trends pan out.

“Retailing and shoppers never stand still and these latest results hint at a new dynamic in everyday life: of consumers valuing every pound in their pocket a measurable amount more and making them count a little bit extra.”

ENDS