Retail sector footfall across UK destinations climbed for the third consecutive week, which analysts said was improving the mood compared to before Christmas.
The latest data from Springboard, which provides retail insight and figures, suggested that visitors to the high streets from the week commencing 22 January drove the rise.
Footfall in shopping centres and retail parks were virtually flat from the week prior.
The largest rises came from city centres outside of London, with the gap in footfall in town high streets across the UK, excluding London, the closest it’s been to pre-pandemic levels.
Springboard suggests that this indicates employees were returning to the office in greater numbers.
There were rises on all but one day compared to the week before, with “consistently larger” increases from Thursday onwards.
Shares in retailers were in the green on Friday, with Marks and Spencer Group PLC (LSE:MKS), Next PLC and Dunelm Group PLC (LSE:DNLM) moving higher, though House of Fraser and Sports Direct owner Frasers Group PLC (LSE:FRAS) was down.
According to analysis from Shore Capital, the mood in the new year among British retailers has improved compared to before the important festive period.
Investors will be looking for inflation to ease and interest rates to peak, which should result in increased consumer confidence and improved living standards.
"The period to June 2023 is likely to be a trading slog but the wheels are unlikely to fall off the bus," said Shore Cap analyst Clive Black.