Experian FootFall EuroShopper Trends Report Q1 2014

Q1 2014

014

Q1 2014

Executive Report Summary

Country Jan Feb Mar Q1

Portugal 6.6 1.5 -0.9 2.5

Italy 3.9 0.2 -7.1 -0.7

France 0.4 -1.2 -7.0 -2.4

Switzerland -1.7 0.2 -4.1 -1.8

Poland -0.4 -4.7 -9.3 -5.0

Rep. of Ireland 3.8 1.4 -2.4 1.0

Austria 5.0 2.1 -6.6 -0.7

Germany 1.6 1.2 -15.8 -4.6

UK 3.4 -2.4 0.3 0.4

Spain -0.8 -2.3 -3.0 -1.9

Quarter 1 2014

Welcome to the latest EuroShopper Trends Report from FootFall .

Each quarter, FootFall analyses thousands of retail outlets across 10 countries to bring you the latest consumer behaviour trends throughout Europe.

In Quarter 1 2014, we saw an increasing proliferation of smartphone sales across the continent posing the greatest ever threat to retail footfall.

However, progressive retailers are embracing this consumer shift by investigating WiFi and Bluetooth technologies to engage with mobile savvy shoppers.

The UK performed poorly in February due to extreme weather conditions, while Portugal topped footfall figures for the fifth consecutive quarter.

Analysis of FootFall % Change: Year-on-Year for Q1 2014

FootFall EuroShopper Trends Report Q1 2014

European Indices Q1 2014

Overview of % change Year-on- Year

Commentary

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

Portugal Italy France Switzerland Poland Rep. ofIreland

Austria Germany UK Spain

Q1

European bricks and mortar retailers are facing increasingly tough challenges attracting footfall in the wake of advancing technologies, as new research released last month revealed retail purchases made via smartphones are expected to double across Europe in 2014. Showrooming – viewing items in-store before purchasing them online – is also becoming a widely debated discussion, with retailers becoming concerned that their stores will act as display areas rather than channels for purchasing goods. In contrast Webrooming - where consumers do their research online and then head to the store to actually make a purchase, is fast becoming prevalent within consumer shopping trends.

However, while the adoption of smartphones for retail transactions threatens consumer traffic in the short term, it also presents an opportunity for retailers to entice consumers back to the shop floor. Personalised promotions and digital marketing allows retailers to utilise Wifi and Bluetooth solutions to incorporate mobile activity in to the in-store experience.

FootFall EuroShopper Trends Report Q1 2014

-20%

-15%

-10%

-5%

0%

5%

10%

Portugal Italy France Switzerland Poland Rep. ofIreland

Austria Germany UK Spain

Jan Feb Mar

The growing threat of rival online channels aside, the footfall story during Q1 2014 was a tale of two halves, with Portugal, Ireland and the UK showing year on year improvement while France, Italy, Switzerland, Poland, Austria, Germany and Spain experienced declines. Poor results in these markets were due to Easter taking place in April this year, as opposed to 2013, when Easter Sunday fell on 31st March. With the exception of the UK, every country experienced a footfall decrease in March 2014 compared to the same month last year, and across the board it was the weakest month for consumer traffic.

Carrying on from its strong results for the majority of 2013, Portugal was once again the best performing European region with a +2.5% gain. Declining unemployment figures and inflation rates at a 4.5-year low have continued its consistently improved results into Q1 2014, however its three-year European Union aid programme is due to end in May this year, which may affect its results in the next three quarters as consumer confidence is still very cautious .

European Indices January to March 2014

Analysis of % change Year-on-Year

FootFall EuroShopper Trends Report Q1 2014

Poland was the big loser in Q1 2014 with a -5.0% footfall decline. The country relies on Russia and Ukraine for 20% of its trading revenue, and recent political problems within these markets have harmed this relationship, which has meant consumer confidence on the whole remained negative. Footfall has been in decline for more than a year now, which some economists have attributed to the emigration of skilled workers, as this is limiting the career opportunities and spending power of those who choose to stay in the country.

Although March was universally the worst month throughout Europe, there were fluctuations within certain markets. For instance, the UK’s worst month during Q1 2014 was February due to extreme weather affecting large parts of the country. The UK MET office described hurricane strength winds and torrential rain that battered Britain during this period as causing an ‘almost unparalleled natural crisis’.

Switzerland, meanwhile, had a positive ‘spike’ the same month. This could well be due to a bout of snow hitting the country during late February/early March last year, along with inflation rates falling to a four-month low in February 2014 and growing trade surplus increasing consumer confidence.

The shopper trends report looks across data from over 300 of our European clients to determine trends in shopping centre visits in the last quarter. For more information, or to find out how people counting and retail site analytics can support your business growth, email: information@footfall.com orcall +44 (0) 121 712 1444.

For more information, or to find out how people counting and retail site analytics can support your business growth, email: information@footfall.com or call +44 (0) 121 712 1444

FootFall EuroShopper Trends Report Q1 2014

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FootFall EuroShopper Trends Report Q1 2014