UK retailers experienced mixed trading performances in the run up to Christmas as footfall across all retail destination types surpassed 2019 levels.
In the grocery sector, German discounters Aldi and Lidl recorded strong sales, as did UK supermarket groups Tesco and Sainsbury’s.
Earlier today, high street fashion and home furnishings retailer Next – which is often seen as a bellwether for the wider retail sector – reported better than expected Christmas trading. The firm said its full-price sales had increased by 5.7% in the nine weeks to 30 December, compared with the same period in 2022.
However, Sportswear brand JD Sports issued a profit warning following a weak Christmas, with lower than expected growth of 1.8% in the 22 weeks to the end of December.
According to data from MRI Software, the final week before Christmas saw footfall rise across all retail destinations on the previous week by 11.2%, largely driven by a rise in visitors to retail parks (17.2%) and shopping centres (16.4%) with high streets recording footfall growth of 5.8%.
MRI’s figures show footfall was higher than 2019 across all destination types, with the increase primarily driven by grocery shopping, which saw consumers favour retail parks and shopping centres over high street locations.
Retail landlords said they also detected the surge in shopper numbers. A spokesperson for Landsec said: “For many, choosing to shop in person at Christmas is as much about the experience as it is about finding the best deals. Destinations that offer the right mix of brands, convenience and unique experiences were well placed to capitalise on this. Across our UK-wide portfolio, we saw a marked increase in visitors throughout the festive period as people flocked to prime retail destinations.
“Following one of our strongest Novembers on record, the number of people visiting prime retail destinations during December remained high, with footfall well ahead of industry benchmarks and up 3.1% compared to last year. The week before Christmas is always one of the busiest for retail and this year we outperformed expectations, with more than half a million extra visits to our retail destinations compared to last year and footfall soaring by 23% across our outlets.”
The Entertainment District and Outlet Shopping at The O2, which are owned and operated by Waterfront Limited Partnership, a joint venture between AEG and Crosstree Real Estate Partners, reported a record-breaking Christmas period, seeing a like-for-like sales uplift of 14% compared with December 2022, and Boxing Day sales (up 33% from 2022) resulting in a new record trading day. Footfall across the whole destination throughout December was also up 19% versus 2022, and up 14% versus 2019.
Louisa Dalgleish, leasing director at Outlet Shopping at The O2, said: “2023 was a standout year for us. We demonstrated our ability to actively engage with and listen to our visitors, and work collaboratively to identify growth opportunities for existing tenants, whilst securing high-quality brands that resonate with our visitors, and the results speak for themselves. Whilst we look forward to building on this success in the new year, we’re not a destination which sits still, and we are confident of taking Outlet Shopping at The O2 to new heights in 2024.”
