Retail Traffic Index™ figures from the retail research group, SPSL, released today show that the number of shopping trips made in February fell by 1.3% year-on-year and by 9.3% on January. These figures, when compared with retailers’ recently posted trading results, are beginning to show that the luck has gone out of retailing. The message is now clear; get every single element of your offer right or consumers won’t buy. 

According to Dr. Tim Denison, Director of Knowledge Management at SPSL and leading retail psychologist; “On the face of it the February figures are better than we had expected, following the very quiet January. Nevertheless, the year-on-year drop is flattered somewhat by a weak comparator month last year. February 2006, was a very cold month, in which shopper numbers took a tumble.

“Though it contains St Valentine’s Day, February represents the nadir of the retail footfall year, with fewer shopping trips made than any other month, so we should not generally attach too much significance to the month’s figures in isolation. However, if instead we look at the underlying trend over the last 12 months approximately 3% fewer shopping trips are being made to stores compared to a year ago.

“Retailers simply cannot afford to rely on the whims of the passer-by or that, with a little ‘luck,’ they’ll be able to trade through the slowing demand conditions.  With consistently fewer trips being made, they daren’t. Instead they must look to adopt a two-pronged strategy: maximising store footfall by developing initiatives to proactively drive customers into their stores and capitalising on the footfall they get once they’ve achieved that, converting browsers into buyers and up-selling whenever they can.

“This means that every element of their offer must be spot on: product, pricing, availability, quality, service levels, ambience, marketing, and, most importantly, they must constantly measure, manage and improve their offer. The economic squeeze on consumers means that any lingering mediocrity will not sustain sales any longer. In short; the luck has gone out of retailing.

“More than ever before the really good multiple retailers are taking the guesswork out of the trade and adopting a truly scientific approach to their businesses. Precision retailing is the new name of the game, equipping oneself with the tools to optimise and fine tune performances from product right through to customer.  This way, the leading retailers are continuing to successfully grow sales and preserve margins, despite footfall levels falling on the high street and in the shopping centres. The key question, unanswered so far, is how much further footfall can shrink before we start seeing it reflected in the sales figures of even the best-in-class.”