The first sign of inflation on the high street for four years has provoked a fall in shopper levels, according to new figures released today.
Retail information provider, Footfall, released the figures, known as the Retail Footfall Index (RFI), stating the number of people visiting retail destinations is falling behind 2005 levels by 5.6%.
Although there has been a 1.3% week-on-week increase of footfall levels, Footfall say this is just in line with seasonal trends and will do little to alleviate the long term fears of retailers.
“With a likely interest rate rise in November expected, 2006 is proving to be a very frustrating year for retailers,” said Natasha Burton, a spokesperson for FootFall.
Half-term holidays and Halloween should normally be expected to provide some relief and a surge of people visiting retail destinations, added Burton.
“Consumers are clearly concerned over squeezed disposable income levels as household bills and high street prices rise. This is likely to have an impact on Christmas shopping levels,” she continued.
Warmer than average temperatures stifling the demand for seasonal product lines were also adding to the retail slump, according to Burton.
Footfall provides retail business information to the retail, and retail property markets. The RFI measures more than 150 million shopper visits per month in over 200 retail centers throughout the UK.
© Crimson Business Ltd. 2006
