Alan Monahan writes: I’m pleased to report that the Easter bank holiday lived up to expectations as the most anticipated weekend for retail after Christmas.
However, it does seem that worsening consumer confidence and inflation has led to more conservative spending on retail goods, with shoppers preferring ‘experiences’.
Retail intelligence experts Springboard recorded an increase of +1.2% in UK high street footfall from Good Friday to Easter Sunday. And although it was down -2% across retail as a whole, retailers are looking to finish the bank holiday on a positive note with midday Easter Monday footfall tracking at +3.4% year on year.
The results are attributed in part to the shift in weather compared to Easter 2016, while food and beverage outlets are believed to be the key driver of the trend for increased footfall outside of retail hours.
Springboard insights director Diane Wehrle asserts that high streets have led the surge in footfall across the UK this Easter due to their adaptability and diverse hospitality offering, which supports their ability to respond to trends more quickly than retail parks and shopping centres.
Online transactions increased +12.4% on Good Friday compared with last year, according to PCA Predict, counter balancing the footfall decline. This reversed on Easter Saturday with a decline of -4.4% in line with the increase in footfall. Mobile transactions fuelled online activity, with a +9.9% rise compared with just +2.5% by tablet, while PC transactions declined -12.7% year on year.
London’s West End performed much more favourably this Easter than last, seeing a rise in footfall of +6.8% from Good Friday to Easter Sunday, while a currency advantage for overseas visitors helped sales.
Meanwhile, the British Chambers of Commerce reported that its members had a good start to the year, with domestic and export sales increasing in the first quarter compared with the end of 2016. Its survey also revealed that hiring intentions were up and confidence in turnover and profitability was improving.
At the same time, confidence among UK small firms has risen to the highest level in over a year, despite spiralling business costs, according to the latest Federation of Small Businesses (FSB) Small Business Index which stands at 20 in the first quarter of 2017. This is the highest figure since Q4 2015, and considerably up from the -2.9 recorded after the EU referendum. The strong recovery has been spurred by increased international trade.
