You are here: Home - Household Bills - News -

Retailers see tough future as footfall drops

Written by:
As bed maker Warren Evans becomes the latest retailing casualty, a report by retail consultancy Springboard shows the worst January for sales and footfall in five years.

Footfall (the number of shoppers passing through stores) dropped by 1.6% last month, the worst result for January since 2013, and customer numbers on the high street fell by 1.9%.

Data from Visa showed household spending was down by 1.2% year-on-year in January. Visa accounts for around one-third of consumer payments and suggests that the next set of retail spending figures may be weak.

Warren Evans is the latest in a long line of retailers having problems. Toys R Us UK, Morrisons, Marks & Spencer, Topshop/Topman, B&Q and East have all reported problems and potential job cuts, while furniture group Feather & Black has recently found a buyer after going into administration.

Research from NatWest and consultancy Retail Economics, released last week, painted a difficult picture for the retail sector in the year ahead. Key findings included:

  • sluggish wage growth of 2.2% seen in 2017 will continue in 2018
  • retailers’ profitability remains under pressure, with operating costs increasingly high
  • uncertainty over Brexit and structural changes within retail will exacerbate challenges
  • the shift to online and the experience economy will further strengthen the case for business transformation
  • 36% of consumers expect another interest rate rise by June 2018.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
interest rates, landlords
Slump in tracker take-up as borrowers flock to fix mortgage rate

The number of tracker rate mortgages has fallen to its lowest level in nine years.