The British Retail Consortium (BRC) has warned that low consumer confidence ahead of the upcoming Budget next month is driving shoppers away from retail locations around the country.
BRC-Sensormatic data shows total retail footfall in the UK fell by 1.8% year-on-year in September, significantly worse than the 0.4% decline recorded in August. Tube strikes in London, heavy rainfall in the first half of last month and Storm Amy towards the end exacerbated the decline.
High Street footfall decreased by 2.5%, while retail parks and shopping centres saw falls of 0.8% and 2.0% respectively.
Helen Dickinson, Chief Executive of the BRC, commented: “While August saw stronger growth in High Street footfall, September saw High Streets back as the weakest performer across all retail locations. For the first time since June, all three retail destinations recorded year on year declines in shopper traffic.”
She added: “Retailers’ ability to invest in local communities and High Streets has been hampered by last year’s Budget, which added £5bn in employment costs to the industry, in addition to a new packaging tax. For retailers to invest in shopping destinations that will entice shoppers back, the government-imposed cost burdens holding back that investment must be lifted.
“The upcoming Budget is the moment for the Chancellor to do just that, deliver the Labour manifesto commitment of a meaningful reduction in business rates for the industry and ensure no shop pays more in the process.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, added: “Retailers will now be hoping that September’s slowdown was less a sign of retreat, and more a pause for thought. As we move into Q4, the opportunity lies in converting that caution into confidence—especially for those who can deliver value, experience, and convenience in equal measure. While not easy, it is essential.”
NAM Implications:
- The evidence of diminishing consumer confidence has surrounded us for five post-lockdown years.
- The upcoming Budget will simply accelerate the trend…
- Meanwhile, there is an underlying unease and lack of trust in government…
- …affecting consumers and retailers alike.
- Not an easy fix.
- But opportunities for those unwilling to await a return to ‘normal’…
