A Christmas trading forecast from MRI Software says there will be a year-on-year drop in UK footfall in the lead-up to December, as households continue to feel cost-of-living pressures.
The greatest monthly loss in foot traffic since January 2023 is predicted to be 3.2% for all UK retail destinations in September.
Footfall will also continue to decrease in October by 0.1%. From October to November, it will remain unchanged before rising by 5.1% in December.
The increase in foot traffic from November to December is expected to climb by 5.1%, which will be the greatest month-over-month gain in 2023 but is still less than the 5.8% increase in 2022.
Therefore, MRI Software anticipates a difficult Christmas for businesses in the retail and hospitality sectors as Brits tighten their belts in response to growing costs that ‘will have started to bite since September.’
Household financial limitations brought on by high interest rates and inflation ‘will cause the drop.’ Despite the fact that interest rates were not increased in September, about 500,000 households will have their fixed-rate mortgages expire in the early part of 2024, at which point they can expect a substantial hike in their monthly payments.
Diane Wehrle, Insights Director at MRI Software, said, “With this additional financial burden for so many consumers just over the horizon, MRI Software anticipates that this will curtail consumers’ propensity to shop.”
