Despite a modest improvement for high streets, overall retail footfall declined in August for a fourth consecutive month after fewer people visited retail parks and shopping centres.
BRC-Sensormatic data shows retail footfall across the UK decreased by 0.4% year-on-year in August, matching the 0.4% fall the previous month.
Footfall on both High Streets rose 1.1%, marking a significant uplift from the 1.7% downturn in July, as sunny weather encouraged people back to town and city centres.
However, footfall in Retail Parks slipped 1.1% in August, down from a 1.7% increase in July, whilst Shopping Centre footfall was unchanged at 0.0%.
“The last Budget imposed £7bn in new costs, which has limited retailers’ ability to invest in local communities,” said Helen Dickinson, Chief Executive of the British Retail Consortium (BRC).
“The government’s planned reductions of business rates for retail and hospitality premises are the golden opportunity to change this, and the Chancellor must use the Budget to ensure that no shop pays more as a result of reforms. This would enable retailers to invest more in our local communities, support local jobs, and relieve pressure on prices.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, noted that while the sun may have helped with demand on the High Street, he said: “There may be (metaphorical) storms ahead. Retailers continue to be asked to do more with less, even as the cost of delivering great service rises. But shoppers are out there, and they’re shopping around – which means opportunity is on the table. Growth is possible, but it demands boldness: investment, innovation, and a willingness to take calculated risks.
“For many, winning business hinges on service, which requires labour—and labour is more expensive than ever. The sector is resilient, but resilience alone won’t reignite momentum. To avoid flatlining becoming a new kind of normal, we need a spark. Whether that comes from innovation, creativity, or external support / investment, one thing’s clear: a nation of shopkeepers still needs its shoppers.”
NAM Implications:
- It could be that we are looking at a potential trade-off between retailers and the government…
- i.e. “Don’t over tax us and we will invest”
- “Your call”
- Given today’s Whitehall news, a tough call…
