UK shopper numbers fell last year by most since pandemic, BRC says

By David Milliken

LONDON (Reuters) - The number of people visiting British shops last year fell by 2.2%, the biggest drop since 2021, industry data showed on Friday, adding to signs of a broader economic slowdown.

The British Retail Consortium said footfall in the final quarter of the year - when Christmas spending is key for most retailers' profits - had fallen by 2.5% year-on-year after a 0.1% rise in the third quarter.

"While December saw some flurries of festive footfall around a few key trading days, overall the picture was filled with much less sparkle as shopper traffic remained subdued," said Andy Sumpter, a consultant at Sensormatic, which collects the data.

Britain's overall economy stagnated in the third quarter of 2024 and the Bank of England has forecast a similar outturn for the final quarter of the year.

Footfall in December alone dropped by 2.2% year-on-year after a 4.5% decline in November but that improvement largely reflected Black Friday falling in the December period in 2024, the BRC said. December 2024 data covered shop visits over the five weeks from Nov. 24 to Dec. 28.

The most recent official data, for November, showed that retail sales volumes excluding fuel rose by 0.1% over the previous 12 months.

The broader picture for retailers remained tough, especially for those with expensive town-centre locations, BRC Chief Executive Helen Dickinson said.

"High streets and shopping centres were hit particularly hard throughout the year as people veered towards retail parks to take advantage of free parking and the variety of larger stores," she said.

Businesses have widely complained about a 25 billion pound ($31 billion) increase in employment taxes announced in finance minister Rachel Reeves' first budget on Oct. 30. The BRC also restated its concern about property taxes, which weigh heavily on retailers with expensive city centre locations.

($1 = 0.8036 pounds)

(Reporting by David Milliken, editing by Andy Bruce)