High Street suffers as shopper numbers fall after ‘drab’ pre-Christmas period

High street retailers have been dealt a fresh blow as shopper numbers fell in a “drab” run-up to Christmas.

Store visits fell 2.2 percent in December compared with a year earlier, capping a disappointing performance in the so-called “golden quarter,” which is the peak shopping period in the three months before Christmas.

For the quarter as a whole, the number of shoppers decreased by 2.5 percent, according to the British Retail Consortium (BRC). It comes in the wake of a report warning that store closures are expected to accelerate during 2025.

BRC chief executive Helen Dickinson said: “A drab December in which there were fewer shoppers across all locations capped a disappointing year for UK retail.

‘Habits have been changing rapidly and customers are increasingly looking for experiential shopping, as well as a variety of cafes, services and things to do.

“Unfortunately, investment in town centers and high streets is being held back by our outdated business rates system, which penalizes town centres.”

Experts say consumer confidence has also been damaged by the gloomy turn the economy has taken under the Labor government.

Clive Black, retail analyst at Shore Capital, said: “The British shopper appears cautious, in tune with a weakening macroeconomic backdrop driven by the Chancellor’s narrative and budget.”

BRC figures showed the number of buyers in 2024 fell 2.2 percent from the previous year, a second consecutive year of decline.

High streets and shopping centers were particularly affected as people diverted towards retail parks to take advantage of the free parking and variety of larger stores, the BRC said.

Dickinson added: “The Government’s proposals to reform business rates may ease the burden on some retailers, but it is vital that ultimately no shop ends up paying more rates than before.”

Last week, analysts Rendle Intelligence suggested Christmas appeared to have been “disastrous” for retailers, with shoppers down 11.4 per cent year-on-year in the last full week before Christmas.

Even on Super Saturday – the last Saturday before Christmas Day, which is typically the busiest shopping day of the year – the figure was only 4.1 percent higher than the previous Saturday, and only 0.9 percent more than the same Saturday in 2023.

And a gloomy report yesterday predicted that 17,350 stores will close this year, after 13,479 closed permanently in 2024.

The Retail Research Center said 2025 will be a more difficult year for retailers than 2022, when government support was withdrawn following the pandemic.