💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

EMBARGOED-Discounts fail to boost UK shopper numbers-survey

Published 11/30/2008, 07:01 PM
Updated 11/30/2008, 07:02 PM

(EMBARGOED UNTIL 0001, DEC 1)

LONDON, Dec 1 (Reuters) - Heavy discounting by Britain's retailers has failed to boost shopper numbers and the rate of business failures in the industry is accelerating, surveys by researchers Experian showed.

The Experian Retail FootFall Index fell 0.9 percent in November, compared with the same month last year, led by a 5 percent drop in Scotland and also including a 1.3 percent increase in the south east of England.

"From a UK wide perspective, it seems efforts at deep discounting have failed to attract significant shopper numbers into the stores," said Jonathan De Mello, director of retail consultancy at Experian.

"The spectacular events held at the end of the month provided some spikes in shopper numbers but levels have quickly dropped back." Most of Britain's big store groups have held discount days or announced big promotions in recent weeks as they seek to lure shoppers worried about a recession and rising unemployment.

The pain has been too much for some, with the retail chain of sweets-to-DVDs group Woolworths and furniture group MFI both calling in administrators last week.

Experian said business failures in the sector were up 18 percent in the last 12 months and now totalled 1,017 non-food retailers.

The rate of retail business failure was also accelerating, rising by 21 percent in November for non-food retailers and by 50 percent for food retailers, it said.

Cash-strapped shoppers are also spending more time looking for bargains online, Internet research company Hitwise, an Experian company, said.

UK Internet searches for discount vouchers have increased by 133 percent over the last 12 months, while visits to voucher websites have gone up by 45 percent, Hitwise said.

"A whole online sector has emerged to feed British consumers' hunger for discount vouchers for everything from supermarket shopping and pizzas to discounts at high-end department stores," said Hitwise director of research Robin Goad. (Reporting by Mark Potter; Editing by Andrew Macdonald)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.