Retail footfall down 7.7% in September

The trend in footfall figures has been falling consistently since last March, writes Jack Fagan

THE NUMBER of shoppers visiting Ireland's main shopping centres is continuing to fall in line with the contraction in consumer spending as a result of the credit crisis and fears of a severe recession.

National footfall figures produced by Experian, the global information services company, show that the number of shoppers visiting shopping centres in the principal cities in September were 7.7 per cent below the figures for August last and 4 per cent lower than in September 2007.

The fall-off between September and August was the most significant recorded and, though the footfall in the first week of September was a huge 9.1 per cent lower than in the previous week, this was probably due in part to the start of the new school year.

Nevertheless, the overall trend in footfall figures has been falling consistently since last March underlining the economic slowdown now unfolding.

The findings come after the Central Statistics Office reported that the value of retail sales (excluding motor trades) in August decreased by 2.5 per cent compared with the same month in 2007 and the decline was 1.4 per cent when compared with the previous month.

This trend has almost certainly continued through September as many high street traders have been complaining about the slowdown in business because of the credit crunch and fears of job losses.

As unemployment rises and Budget increases in taxation take hold, retail spending is likely to decline further.

Most of the multiples are reluctant to embark on further expansion at this stage, a strategy that will inevitably lead to a curtailment of new shopping facilities over the next few years. Having an anchor tenant is no longer a guarantee of success for developers who are now finding it increasingly difficult to line up reputable secondary tenants because of the current trading difficulties and the reluctance of banks to fund further expansion.

Mark Mullally, property services manager of Experian, said we are already seeing high street retailers here holding mid-season sales to boost revenues. "Similar to last year, I expect that the phenomenon of pre-Christmas sales will be repeated. So while the trend year-on-year is falling footfall figures, we may see an upward surge towards the end of year as shoppers seek out bargains."

Mullally predicts that last week's Budget is likely to have a further negative impact on consumer spending. Increases in VAT, rising fuel costs and concerns over job security all meant "a general tightening of the purse strings".

He said that in the UK some high street retailers were reporting increased online sales but falling high street revenues. This was a trend which may be repeated in Ireland as more people begin to shop online.