Based on Beauclair Data across the largest 62 Cities and Towns nationwide.
- Storm Babet and Ciaran drive customers and sales away from High Streets in October 2023
- Across our 62 Cities, customers and sales are both down on average -5% versus October 2022.
- According to MRI OnLocation Footfall Analytics, High Streets in October 2023 were most negatively impacted by rain, versus Retail Parks and shopping centres with shelter and easier access. This may also have helped General Retail which includes Department Stores, it saw a small 1% growth in customers and -1% drop in sales, which was a solid Oct 2023 performance.
2. Grocery was the only sector in sales growth as customers cut back on non-essentials.
- High Street Grocery sales were up +3% on average across our 62 cities, but customers were down -1% with inflation likely still at play in this sector.
- 47% of consumers plan to cut down on discretionary spending so they can afford their energy bills throughout autumn and winter, with buying new clothes and accessories for day-to-day wear among the most common areas consumers are cutting back on according to Barclays.
3. Fashion decline continues, it was the poorest performing sector.
- Fashion sales dropped -6% sales and customers in October 2023 vs October 2022.
- The sector seems to have been hit by a triple whammy of warm weather at the start of October, rain driving people away later, and Fashion being a key target area to for customers to cut spend.
4. YTD Health and Beauty is the strongest sector, benefiting from the “lipstick effect”
- Health & Beauty sales were flat, and customers down -4% October 23 vs October 2022.
- YTD this is still the best performing sector, with +9% sales growth and +4% customer growth. The “lipstick effect” is a well know phenomenon where customers in tough financial times cut back on big ticket spends like cars. but still want to treat themselves so splash out on a lipstick.
5. Customer Confidence low coming into the festive season, how can High Streets prepare?
- GFK’s Consumer Confidence Index dropped 9 points in October, taking us back to July as cost-of-living, mortgages payments and conflict in the Middle East all weigh heavy.
- Barclays survey says 37% of customers expect they will spend less on Christmas Gifts this year.
- High Streets need Christmas CUSTOMERS not just visitors e.g. how can retailers ensure they are offering the right VALUE, or creative promotions like buy a coffee, get £5 off same day purchases, present your same day travel card and get a free drink in the pub.