Numbers of shoppers on high streets outside London have fallen but shopping centres have managed to draw in more customers thanks to giant screens
As London retailers ask the government to remind the public their shops are still open for business, it is not just the capital that has been hit by the Olympics.
The numbers of shoppers on high streets outside London have fallen, although shopping centres have managed to draw in more customers thanks to giant screens showing the Olympics, poor weather and the suspension of Sunday trading laws, according to retailers.
Diane Wehrle, research director at Springboard, which measures shopper numbers, said the decline in footfall last weekend outside London was more than 9% and warned that the numbers will continue to be down.
She said: “The Olympics has played a significant part, especially on the high street. The good weather ended, coinciding with the Olympics starting, which drove people back home to watch.
“Now that we have won a few medals, the excitement will only build and shoppers are expected to stay away from the high street throughout the Olympics.”
Some Olympic events are being held outside London – such as football, and sailing in Weymouth – but the message from local authorities is at odds with London’s recommendations to avoid certain “hotspots”.
Garry Clark, from the Scottish Chamber of Commerce, said: “People are viewing London as somewhere they don’t want to be at the moment, but in Scotland the cities in particular are very busy.
“We’ve had football fixtures in Glasgow, so we’ve got a lot more visitors to the city.”
He said it remains to be seen whether or not the increase in footfall will lead to a rise in sales volume. “Yes, there are people in the cities, but will that translate to sales? We’re certainly hopeful that we’ll see an increase.”
But while high streets across Britain might be mirroring the quiet scenes of London’s West End, shopping centres have seen seen shoppers pouring in.
At Manchester’s Trafford Centre, general manager Tony Sheehan said since the Olympics there has been a increase in overseas visitors.
He said: “Footfall this week is currently 11% up on the same time last year and retailers are reporting strong sales. Our visitors have been keeping up to date with Team GB on our big screen, and this has attracted very excited crowds throughout. Our Olympic-themed sporting events have also been very busy, and our staff say it feels a little like Christmas week, but with better weather.”
In Stoke-on-Trent, the Potteries Shopping Centre saw footfall up 8.3% compared with last week, with Sunday particularly strong, up 6.6%, in part due to a suspension in Sunday trading laws during the Olympics and Paralympics.
Big TV screens also appear to be drawing in shoppers. At Chapelfield in Norwich, a giant screen has been put up outside, with hundreds of chairs for people to watch the action, a trend across the country.
But there are serious concerns that the high street could struggle, particularly during the lull between the end of the Olympics and the start of the Paralympics.
Richard Dichinson, chief executive of the New West End Company, which represents key Londonretailers, said it is preparing an emergency advertising fund to try to entice shoppers.
And on Wednesday, Lord Wolfson, chief executive of Next said: “The two weeks of the Games for retail won’t be good. As with any sporting event, people tend to stay in and watch them on television rather than go out shopping.”
Posted by admin | Posted on 29-07-2012
Category : Business
Tags: britain, country, economic growth (gdp), features, figures, government, green shoots, recession, saunders, sport, the observer, visitors
With the boost to construction and surge in visitors it brings, the Games would seem certain to lift the UK back into growth. But data from previous hosts suggests the opposite is true
Last time London hosted the Olympics, Britain was in deep economic trouble and up to its eyeballs in debt. It was 1948 and the country was reeling from six years of war that had drained the national coffers. No new stadiums were built for the original “austerity games”: Wembley doubled as an athletics stadium after organisers poured 800 tonnes of cinders over the greyhound track.
More than 60 years later, the shiny Olympic stadium in Stratford is new, but the economic conditions are similar. The country is creaking under the weight of debt; Europe is broke and the government is on an almighty austerity drive.
Last week official figures showed the economy had sunk deeper into recession. Perhaps, even more than a haul of gold medals, Britain needs its companies to start winning contracts again.
To that end, the Olympic flag has been hoisted over London’s historic Lancaster House. The grand building, a stone’s throw from Buckingham Palace, is the setting for a frantic round of meetings over the coming fortnight as the government uses the Games to bang the drum for British business.
With the official cost to the taxpayer around £9bn, the coalition want the London Olympics to provide more than world records. Alongside social legacy commitments such as igniting “a new passion for sport across all age groups”, organisers hope the spectacle will deliver a £3bn economic boost, with two-thirds of that to come from an increase in tourism and the remainder from attracting foreign investment.
David Cameron started the ball rolling on Thursday with what was billed as the biggest investment conference ever hosted in the UK. The event was a who’s who of the global financial system: International Monetary Fund chief Christine Lagarde rubbed shoulders with Mario Draghi, governor of the European Central Bank and Angel Gurría, secretary general of the OECD. There was also an impressive roll-call of business leaders, with Google chairman Eric Schmidt sharing a platform with Cisco’s John