Brexit Uncertainty Fails to Deter Shoppers
- January footfall declined by 0.8% according to Ipsos Retail Performance
- Lowest decline in three years
- Year-on-year deficits down from -2.2% to -11.0% over Nov 2018-Jan 2019 period
- Footfall in January lowest since 2008 compared to Dec 2018
- Increasing wages and falling inflation boosting shopping
- South West England & Wales recorded weakest year-on-year figures for sixth month
- Northern England, Scotland & Northern Ireland, Midlands experienced growth in footfall vs Jan 2018
- First week of January saw +6.4% rise in traffic year-on-year across all regions
- Trend data shows strengthening shopping behavior since May 2018
January saw the lowest footfall decline in three years, according to Ipsos Retail Performance. Despite Brexit uncertainties, shoppers are continuing with their everyday activities. Year-on-year deficits have decreased from -11.0% in March-May 2018 to -2.2% over November 2018 to January 2019. The first month’s footfall was the lowest since 2008, down -26.5% compared to December. Dr. Tim Denison of Ipsos Retail Performance attributes this to falling inflation rates below the Bank of England’s 2% marker and increasing wages at 3.4%, the highest rate since the financial crisis. Households are replenishing savings and spending on high street. South West England and Wales recorded weakest year-on-year figures for six months, while Northern England, Scotland, and Northern Ireland, along with Midlands, experienced growth in footfall compared to January 2018. The first week saw a +6.4% rise in traffic year-on-year across all regions. Trend data shows strengthening shopping behavior since May 2018.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about footfall data from Ipsos Retail Performance, including comparisons to previous years and regions. It also includes expert commentary from Dr. Tim Denison that adds context and insight into consumer behavior during the Brexit period.
Noise Level: 6
Noise Justification: The article provides relevant information about footfall trends in retail and offers insights into consumer behavior during uncertain times like Brexit. However, it could benefit from more analysis or context on the factors contributing to these trends beyond inflation and wages.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact on retail and consumer spending behavior, which can affect various companies in the retail sector.
Financial Rating Justification: The article talks about changes in footfall, inflation rates, and wage growth, all of which are financial indicators that can have an impact on retail businesses and their performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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