Brexit uncertainty, falling footfall and big-name closures meant High Street in-store sales plummeted in September.
This is according data from the BDO High Street Sales Tracker (HSST) which shows total like-for-like in-store sales fell -3.1% in September, from an already low base of -2.7% last year, making it the worst September for the high street since 2011.
In addition, the lifestyle category saw the lowest in-store sales since the height of the recession in November 2008, as discretionary spending buckles under the weight of uncertainty. In-store sales for the category fell by -5.4% from an already poor base of -2.1% last year.
September also saw the end of a better run for fashion, as in-store like-for-like sales fell by -2.0% from a low base of -2.8% last year. This is the first negative growth in three months for the category.
Footfall was down overall in September, starting off with a decline of -2.5% and culminating in a fall of -5.8% as rain poured across the country in the last week of the month. Shopping centres experienced the worst result in the last week of the month, with footfall dropping -8.0%.
Consumers’ reluctancy to spend extended online too. Non-store results failed to prop up the poor performance of the high street in September. Non-store like-for-like results were well below the annual average, recording modest growth of just +12.4%.
Sophie Michael, Head of Retail and Wholesale at BDO LLP, commented: “As the Brexit date looms, the financial uncertainty facing consumers is reflected in the lack of discretionary spend and the lowest lifestyle sales since 2008. This, combined with the collapse of a big household name like Thomas Cook, seems to have unnerved the shopper even further.
“Cash-strapped retailers are in dire straits. It has been a disastrous year for the high street and, as consumers continue to tighten their belts, they are entering the crucial ‘golden’ trading quarter on very unsteady ground.
“Business owners have long-called for business rates reform and, while I agree this is needed, more urgent government action is required to help our failing high streets into 2020.”
