The UK retail sector faced a continued downturn in December 2024, with a 2.2% year-on-year (YoY) reduction in footfall - a slight improvement from November's 4.5% decline. 

Data from the British Retail Consortium (BRC) and Sensormatic reveals that high street locations saw a 2.7% YoY footfall contraction in December. This fall still signalled a recovery from November's 3.7% slump. 

BRC chief executive Helen Dickinson said: “A drab December which saw fewer shoppers in all locations capped a disappointing year for UK retail footfall. This means 2024 is the second year in a row where footfall has been in decline. High streets and shopping centres were hit particularly hard throughout the year as people veered towards retail parks to take advantage of free parking and the variety of larger stores.” 

Shopping centres registered a 3.3% YoY footfall decline in December, which nonetheless marked an improvement over the 6.1% drop observed in November.  

Retail parks maintained their footfall equilibrium with a 0.0% change YoY in December, ascending from a 1.1% decrease in November. 

Foot traffic fell across all four nations year-on-year, with Scotland seeing a 1.5% decline, England dropping by 2.1%, Wales decreasing by 2.6% and Northern Ireland facing the steepest decline at 5.8%. 

Dickinson added: “Even the Golden Quarter, typically the peak of shopping activity, provided little relief, with footfall down over the period. While the Black Friday weekend delivered more promising results, they were overshadowed by a lacklustre festive season.” 

The Golden Quarter - the three-month lead-up to December traditionally associated with heightened retail sales - suffered a 2.5 YoY decrease in footfall.  

Total UK footfall contracted by 2.2% in 2024 compared to the previous year.  

Dickinson explained: “Shopping habits have been changing fast and customers are increasingly looking for more experiential shopping, as well as a variety of cafés, services and things to do. Unfortunately, investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centres. 

“The government’s proposals to reform business rates may ease the burden for some retailers, but it is vital that ultimately no shop ends up paying more in rates than before. With retailers facing £7bn in additional costs this year from increased tax and regulations, the changes to the business rates system must be made in a way that supports retail investment and growth in the years ahead.”