Impact of Brexit on the rebound as footfall increases 31 percent year-on-year

The impact of the EU Referendum vote on consumer footfall and shopping centre spend is said to be on the rebound according to the latest figures from CRM platform and mobile loyalty provider Coniq. However, there are a number of areas across the UK which are still struggling with the uncertainty of what effect the Brexit will have.

Overall consumer traffic to shopping centres increased 31 percent year-on-year since the Brexit vote, according to data from Coniq. This boost highlights a boost in consumer confidence when it comes to their disposable income and spend. However, even though overall footfall is up from last year, the results differed dramatically depending on whether shopping centres were in areas which voted to leave or remain in the EU.

Interestingly, areas which voted to leave the UK were found to have significantly pulled back on their shopping visits, with footfall decreasing 65 percent in total. However footfall in areas where the majority voted to remain increased 33 percent year on year.

The same principle applied to consumer spending habits, as leave areas reported a 55 percent decrease in transactions, with revenue declining 68 percent as the average transaction value fell by 27 percent year on year. But remain areas saw transactions increase by 40 percent, revenue go up by 50 percent and average transactional value increase by 12 percent.

"It is tough on retailers in today’s climate, where not only do they have to tackle living wages, rising business rates and steep competition, but also political decisions that affect the economy have a huge sway on customer trends and spend," commented Ben Chesser, founder and CEO at Coniq.

"As the UK finds itself in a period of uncertainty it is unsurprising that spend dips in some areas, but following the latest election results and strong response from remain areas, perhaps some of the feeling of instability has passed and shoppers are now looking to return to their usual purchasing trends."

Photo: Pexels

 

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