What is a Footfall ?
The number of people visiting a shop or a chain of shops in a period of time is called as a footfall.
Footfall is an important indicator of how successfull is company's marketing, store management and sales strategy, how successfull is the effort to attract and bring people to the store.
Many retailers have struggled to turn high footfall into sales. Trends in footfall may be an indicator of growth and may help investors to understand why a retailer's sales growth (or decline) is happening. Investors may want to know whether sales growth due to an increase in the number of people entering the shops (footfall) or more success at turning visitors into buyers (which can be seen by comparing footfall to the number of transactions).
Sales growth may also come from selling more items to each buyer (compare number of transactions to sales volumes), selling more expensive items (an improvement in the sales mix), or increasing prices. Which of these numbers is disclosed varies from company to company. Investors should look at whatever is available.