Retail Barometer: Plummeting Consumer Spending?

Retail barometer: plummeting consumer spending?

The Federation of Small Businesses (FSB) says UK high street retail/service indies face a range of risks including plummeting consumer spending, falling footfall and crime or anti-social behaviour. We ask five retailers if this applies to them…

We spoke with:
Alan Martin, Food For Thought, Guildford
Jordan Clements, Wild Oats, Bristol
Elise Clitheroe, REco Store, Tiptree, Essex
Jo Hill, Amaranth Wellbeing, Stockport
Paul Nugent, Elsecar Health Store, Barnsley

1 Are you experiencing plummeting consumer spending, falling footfall and crime/anti-social behaviour?

Guildford: Footfall and sales are up
Bristol: Increased crime/anti-social behaviour
Tiptree, Essex: Core customers loyal
Stockport: Thriving sales
Barnsley: Steady growth

"The short answer is no," says Alan Martin. "Of course it’s a bit more nuanced than that. Sales are up year on year, but we are having to work so much harder to achieve this."

He reports that footfall is also up, mainly due to the way his town is being marketed by Experience Guildford, as the Business Improvement District (BID) is named.

"There is a loyalty aspect though, which is down to what we do. We are seeing customers that shopped in both our Kingston and Kew stores come to Guildford to shop (the Kingston store closed in September last year and Kew in March this year).

"We won the customer service award for best independent store 2023 and that has kept us in a clear pole position. Our team work hard for the business every day and I am immensely proud of every single one of them and the job they do.

"Experience Guildford has also been very proactive in dealing with crime. We see the odd incident but no more or less than we’ve experienced in years past."

Bristol, scene of serious social unrest earlier in the summer, has a different experience.

"We have seen an increase in crime and anti-social behaviour, so we have installed more security cameras both inside and outside of our store for employee security," says Wild Oats’ Jordan Clements.

Although sales are up this year, so are costs mainly due to price rises from suppliers. "We're trying to find areas where we can reduce spending elsewhere," she says.

Elise Clitheroe in Essex wonders if other UK stores are experiencing changing consumer patterns.

She reports, "During the pandemic, we were an essential shop in our community. Because we had toilet rolls, loose pasta and flour in stock, the queues went around the car park!

"Sadly, as soon as the supermarkets caught up, all the new customers who found us so useful forgot about us. Luckily, our core and loyal customers have stayed so we are experiencing less footfall since the pandemic but have maintained our original customer base.

"What has become apparent since the pandemic ended is that there are no regular consumer patterns of behaviour anymore. Perhaps this is due to people having more flexible working hours and are able to shop as and when they like? Other local retailers are experiencing the same phenomenon."

Jo Hill in Bramhall (Stockport) has a positive story to tell. "Sales at Amaranth have seen a good increase year on year and our village is thriving. All units are let and we have a new playground and an outside bar with coffee shop which have brought a feelgood factor and increased footfall.

"We do of course have challenges like all businesses on the high street – a smashed window at the side of the shop and reports of a group in the village that stole goods from some of the shops. But I don’t see these as any different to other years of trading.

"I know that some of the shops in the village are reporting falling footfall and spend but in general these are the less active businesses. Those stores that get involved in events, invest in window displays and the village seem to be thriving."

Across the Pennines, Elsecar Health Store in Barnsley, a.k.a. Paul’s Natural Foods, is thriving.

"We are blessed to be located on a lovely heritage site, which has a diverse range of independent shops, service-based businesses and a local tourism offer," says Paul Nugent. "This means our footfall has held up really well as visitors and locals who attend the site all seek something different.

"This variety of retail offers has meant we get 'the footfall of others' which is a benefit to all of the independent retailers.

"I tend to keep an eye on the sales by volume and average spend, not just the totals. When the cost-of-living crisis 'kicked in' there was a clear tightening of the purse strings by customers, but this seems to have settled back down, and weekday sales are solid and dependable with weekend sales being strong and resilient.

"We are comfortably holding our own through a broadening of our offer with a new home delivery service, a refresh to our online website supported by a clear social media strategy, and a very strong emphasis on good customer service and offering value for money.

"Our prices are competitive, so I make it a high priority to have offers dotted around my shop all the time. Additionally, an engaging and interactive philosophy seems to work well as we 'always say something' to every shop customer.

"We have a vibrant and engaging shop, active social media and a keenly priced and solid website – all getting our sales through very nicely."