Bank Holiday hopes as UK shopper footfall falls in Q1, report shows

UK retailers are pinning their hopes on upcoming bank holidays to reverse a decline in footfall, according to the latest Q1 Movers Index from Virgin Media O2 Business.

The report, released today, highlights an 8% year-on-year drop in retail visits during the first three months of 2025, coinciding with 22 million Britons booking annual leave.

The quarterly index, which combines anonymised mobile movement data from O2 Motion with business and consumer polling, paints a picture of shifting behaviours across the UK. While the retail sector experienced a downturn in physical visits – with 41% of retailers reporting reduced customer spending – optimism remains for a spring rebound. Last year saw a 5% increase in high street visits and a 4% rise in shopping centre footfall between Q1 and Q2.

In anticipation of the bank holiday period, 55% of retailers plan to introduce special deals and discounts (42%) and organise special events (28%) to entice holidaymakers. However, concerns linger, with 52% of retailers worried about staffing levels as 42% have already blocked employee leave.

Meanwhile, the Movers Index also reveals a continued rise in office attendance. Commuting trips saw a 5% increase in the first few months of the year, with Wednesday remaining the most popular day to be in the office (77%). A notable 42% of businesses plan to mandate a full five-day office return by June, potentially impacting weekday retail footfall. Interestingly, 65% of workers view these return-to-office mandates positively, often citing improved perks and workplace culture.

Sheltering from the winter weather in the first three months of 2025, budget-savvy Brits turned to online shopping in search of discounts and low-price items. This is set to continue over the next three months as almost half (45%) of Brits expect to spend less, and 41% actively look for ways to cut unnecessary spending.

Mobile data shows lower and middle-age groups are driving this fall with drops of 15% (25-34 year olds), 4% (35-44 year olds) and 11% (45-54 year olds) in trips to retail areas compared to the same time last year.

Nearly half (46%) have cancelled at least one subscription, rising to 80% of 18-24-year-olds, impacting the 60% of businesses offering this shopping model. With shoppers focusing their spending on holidays and trips (25%), wellness and self-care (18%), and home renovations and improvements (16%), there may be greater opportunity for subscription services linked to these areas.

“The latest Virgin Media O2 Business Movers Index shows a first glimpse into key trends shaping 2025 – office life is continuing to make a comeback and retail is adapting for resilience,” comments Jessica O’Connor, Director of Product at Virgin Media O2 Business.

“For retailers, the upcoming bank holidays present a golden opportunity to boost sales after a tough start to the year. A seamless in-store experience – fast checkouts, good WiFi, and personalised offers – will be key to attracting footfall and driving engagement.”

View the report and access all previous reports here.