For most retailers, 2005 proved to be a year marked by strong highs and dismal lows even though more shoppers hit the high streets than the year before, new figures reveal.
Year-end totals from FootFall confirm what many market observers claimed: that 2005 is a tale of two halves, divided in the middle by the July terror attacks in London.
The year began strong, according to the retail analyst, with consumer visits to stores up by 4.13% in the first six months over the same period in 2004.
Following the 7 July bombings, however, consumer confidence plunged, and shopper numbers declined by 3.06% on the year. The spending slowdown also highlighted consumers' concerns over existing debt levels, according to the report.
Even accelerated holiday sales and discounting in the run-up to Christmas could not rescue the retail sector from a poor end-of-year performance.
Figures from FootFall show shopper numbers down by 3.6% in December over the same period in 2004.
"During December, many shoppers held back on spending levels before Christmas, forcing some retailers to introduce sales activity before the festivities had begun," said Natasha Burton, marketing manager at FootFall.
"Though this helped drive shoppers to the High Street, the month of December still failed to reach the same level of retail activity witnessed in 2004.
"With sales activity now in full flow, it will be interesting to see if 2006 begins on a brighter note for retailers hoping to leave a frustrating year behind them."
