Understanding the Shifts in Footfall

Visitor Insights’ Data on Retail and Community Spaces from 2018 to 2024

Visitor Insights’ Terain platform has provided vital insights into how retail and community spaces are evolving in response to remote work, localism, and shifting consumer habits. Leveraging this data, Newmark has identified key patterns, spotlighting winners and losers among commuter towns, local centres, and city hubs. As Isabelle Hease, CEO of Visitor Insights, explains, “City centres are facing significant challenges as the preference for localism and remote work keeps visitors away during the week, necessitating a pivot towards unique experiences and attractions to draw people back.”

Local Centres and Commuter Towns Thrive in the Age of Remote Work

With a significant shift towards “local living,” commuter towns and neighbourhood centres have transformed into thriving community hubs, as residents increasingly choose to shop close to home. According to Terain data, footfall in neighbourhood centres increased by 32%, largely due to new housing developments, local amenities, and a sense of community. These local centres now meet the needs of residents who prioritize convenience and a vibrant local economy.

Similarly, commuter towns have seized the opportunity to become localised centres of activity in the work-from-home era. Footfall has surged by 22% overall, with weekday visits up 26%, peaking on Fridays. This trend highlights the appeal of commuter towns for family groups and professionals aged 25-40, who can balance remote work with engaging local amenities and services.

In London, many districts have capitalized on this trend, showing a 16% rise in footfall. Londoners increasingly prefer to stay within their boroughs, supported by localized retail offerings and a diverse range of amenities catering to an increasingly affluent demographic.

City Centres and Non-Commuter Locations: A Struggle to Adapt

City centres, on the other hand, have faced a dramatic 36% decline in footfall, primarily due to the shift to remote work and a growing emphasis on localism. Mondays and Fridays see the lowest weekday traffic, underscoring the reduction in daily commutes. Additionally, city centres are seeing a 7% decline in affluent visitor levels, which historically bolstered their foot traffic. Despite this decline, city centres still attract families on weekends, with an 18% increase in family visits as people seek out destination shopping and entertainment experiences. However, Isabelle Hease points out that mixed-use developments and lifestyle destinations may be the way forward, as “there has been a shift to more suburban shopping as footfalls in traditional city centres and malls struggle to recover due to a range of factors including e-commerce.”

Non-commuter towns have faced similar struggles, with an 11% decline in footfall. They lack the commuter-driven weekday traffic seen in commuter towns, limiting their ability to attract consistent visitors. Weekends show a modest uptick in visits, but without weekday traffic, many non-commuter town centres struggle to remain vibrant hubs for residents.

Retail and Leisure Parks Flourish with Convenient, Experience-Driven Offerings

Retail parks are among the few segments that have managed to grow footfall in the past few years, with a 7% increase. Their appeal stems from the convenience of large-format stores offering essentials like DIY, groceries, and fast food, catering to the demands of the modern consumer. Meanwhile, leisure parks have seen an 8% rise in footfall as they continue to deliver entertainment options such as cinemas, family activities, and casual dining, catering to those looking for a complete local experience.

Outlet Centres and In-Town Malls Face Significant Declines

Despite some areas of growth, traditional retail spaces like outlet centres and in-town malls are struggling. Outlet centres have seen a 7% decline in footfall, largely because their product mix—focusing on clothing, footwear, and cosmetics—doesn’t align with changing consumer priorities. With consumers now seeking unique or personalized experiences, outlets relying purely on price competition find it difficult to compete with the convenience of online shopping.

In-town malls have experienced the steepest decline, with footfall down 19% as they continue to rely on traditional retail categories, which are steadily losing relevance. Hease notes that “categories like grocery and health & beauty are seeing strong growth, while clothing and footwear face footfall declines from changes in lifestyle and work-from-home habits.” To remain viable, in-town malls will need to pivot, incorporating experiential elements such as beauty services or interactive retail that online shopping simply cannot replicate. This trend has spurred a wave of redevelopments, with some malls being reimagined as mixed-use spaces to provide a broader range of activities and amenities.

The Future of Footfall and Retail Spaces: Adapting to New Consumer Habits

Visitor Insights’ data offers a detailed view of a retail landscape in flux, with commuter towns and local centres thriving while city centres and non-commuter towns grapple with the impacts of remote work and e-commerce. Retail and leisure parks showcase the growing demand for convenience and experience-driven offerings, while traditional malls and outlet centres are under pressure to evolve.

To stay competitive, spaces experiencing declines must adapt, offering the unique in-person experiences that online platforms cannot provide. For city centres and non-commuter towns expanding weekday offerings and attracting the remote workforce will be essential to sustaining foot traffic. As Hease highlights, “Mixed-use developments and retail parks are gaining popularity, offering a combination of shopping, dining, and entertainment to create lifestyle destinations.”

These trends underscore the importance of flexibility and innovation in retail and community spaces, revealing that a consumer-centric approach that prioritizes both convenience and experiences will be key in shaping the future of footfall across the UK.

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