2023 has proven to be a surprising year for retail, with more footfall in shopping streets compared to 2022. This is particularly surprising given the challenging final quarter of 2022, which was marked by high inflation, high energy prices, and many retailers closing their businesses. Expectations for 2023 were low, and yet we saw an increase in footfall instead of a decrease. Yes, it's true that the first three weeks of 2022 had store closures due to COVID-19 measures, which affects direct comparability. However, a rise of over 2% more shoppers in the Netherlands is still a positive boost for physical retail. On the busiest shopping locations in the Netherlands, it was even 4.7% busier than in 2022.

Many analysts have written about the ongoing growth of online spending, often implying that physical retail is struggling. But nothing could be further from the truth. Physical shopping streets remain a popular place for consumers to shop and meet. It is also noteworthy that online spending in Q3 of 2023 saw a 2% decrease compared to Q3 2022, with online purchases in clothing dropping by 13%.

Does this signal the revival of the shopping street, or has it never really gone away? It seems to be the latter, suggesting that shoppers have increasingly found an ideal mix of online and offline shopping behavior. The combination of these shopping experiences is personal and can be partly explained by the Mentality Shopper Profile, a concept from Motivaction's Lifestyle Monitor, which categorizes shoppers. For example, the 'safe shopper' prefers to shop in physical stores, while the 'curious shopper' is comfortable exploring online options. These typologies highlight how shopping behavior can differ. For many consumers, it's not a matter of either online or offline, but both!

A further increase in foot traffic in the shopping streets could be possible in 2024.

Each city is working on creating more compact shopping areas with added functions for visitors, such as restaurants, terraces, and theaters. The number of residences in city centers is also rising, increasing the demand for retail. Supermarkets and specialty food stores are moving closer to city centers, and several national chains are experimenting with compact city concepts. Municipalities and business associations are adding green spaces and water features to urban areas, making them more attractive and encouraging longer stays. This caters to the "lazy convenience consumer," highlighting the need for policymakers to continuously study and respond to these changing consumer needs.

Shopping Behavior Changed Further in 2023

With footfall data collected daily across 107 cities in the Benelux during shopping hours, RMC examined whether new shopping patterns were emerging. It turns out that shopping seasons are shifting. We are shopping more frequently in spring and summer. While December is still busy, it has not been the busiest shopping month for two consecutive years. This year, like last year, started slowly for physical retail, but growth is expected in the second and third quarters. Wet weather was often cited as the reason for the slow start, as confirmed by many retailers. Whether our shopping behavior has changed structurally—shopping less in the early months and increasing as the weather warms—remains to be seen. The weekend shopping traffic did show a slight increase (0.4%) in 2023 compared to 2022.

Busiest Days of 2023

Just like last year, the busiest shopping days of the year shifted to the spring. Has a trend emerged? King's Day was again the busiest day in Dutch shopping streets. Notably, the Saturday before Pentecost, May 27, became the second busiest day of the year. The Friday after Ascension Day, traditionally a busy day, ranked third this year. The Saturday before Mother's Day was a surprising new entrant as a busy shopping day. Additionally, the busy Saturday of June 3rd ranked fifth. The pleasant weather in May and June—June being the warmest month of 2023—likely contributed to this trend. December days and Black Friday were not among the busiest shopping days of 2023.

Busiest Month of 2023

May was the busiest month, which is surprising. Last year, July was the busiest month, which was attributed to a post-COVID recovery effect. However, in 2023, there seems to be a clear preference among consumers to visit shopping areas and city centers when the weather is more pleasant. Busy shopping days such as Ascension and Pentecost both fell in May, which may have contributed to making it the busiest month. January through March were quieter shopping months, possibly leading to deferred purchases in May.

Who Is the Shopper in the Shopping Street?

An increasing challenge for retailers is locating their businesses where their target customers are shopping. Therefore, it's essential to understand the shopper profile—what preferences and behaviors they have. Where do omnichannel consumers prefer to shop? Do they prefer stores, websites, apps, or platforms—or a combination? How does the retailer engage their target audience? Is the target customer sensitive to price promotions or eco-friendly products? Do they travel by car, or do they shop online to reduce CO2 emissions? Using data intelligently to anticipate future shopping behaviors helps retailers stay competitive in this evolving market!

For more information, contact Huib Lubbers, Director of RMC.

For the annual 2023 overview with valuable insights into consumer shopping behavior, click here and scroll down.