A new wave of train strikes has hit UK retailers even harder than the Omicron variant of COVID-19, which threatened to ruin Christmas last year, according to new data showing a sharp drop in shopper numbers.
Almost 10% fewer people attended on December 13 – the first day of a series of strikes across the rail network – compared to the same date in 2021 when coronavirus restrictions were in place, according to information provider Springboard.
In December 2021, the UK government made wearing face masks compulsory in shops and public transport and urged people to work from home after the emergence of the highly contagious Omicron strain sparked a new wave of infections. Still, the rail strikes are having a bigger impact on retail.
The downturn is likely to continue as thousands of members of the National Union of Rail, Maritime and Transport Workers and another workers’ group left the railroad companies on December 13, with further strikes planned for December 15, 16 and 17 .
Springboard said that through December 13 at 1:00 p.m., footfall in all shopping districts, including retail parks, was down 6.4% year over year. Main roads were hardest hit with a drop of 9.5%. Compared to pre-Covid times, overall retail footfall has dropped by 26%.
All UK regions suffered from lower footfall with the exception of one, the East Midlands, which grew by 4%. The east of England was hardest hit, with retail footfall down 13% from a year earlier.
On the edge
“The impact on retail and hospitality businesses at a critical trading time of the year, less than two weeks before Christmas, will undoubtedly be severe and could mean failure for some,” said Diane Wehrle, Insights Director at Springboard.
Retailers were already suffering as consumers pulled back on non-essential items amid the higher cost of living. Many hold large inventories that they plan to shift around the all-important holiday season.
For some retailers, changing consumer behavior has proven to be too much. The online furniture brand Made.com and the fashion chains Joules and M&Co have filed for bankruptcy in recent weeks.
