The number of shoppers visiting bricks & mortar stores has fallen by 10% over the last seven years, with last month continuing this trend.
Data from British Retail Consortium (BRC) and Springboard shows overall retail footfall in September fell by 1.7% year-on-year with shopping centres the worst affected, down by 3.2%.
Footfall on the high street dipped by 1.8%, whilst retail parks fared slightly better with visitor numbers edging up 0.1%.
Diane Wehrle, marketing and insights director at Springboard, highlighted that much of last month’s decline on high streets was the result of heavy rain towards the end of the period.
However, she attributed the overall 10% decline in footfall in the last seven years to “the monumental changes that have occurred in our retail trading landscape over the past decade”.
Bricks & mortar retailers have continued to struggle as consumers shift towards online shopping, whilst the rising costs of running physical stores has put additional pressure on retailers and led to the collapse of numerous well-known chains.
BRC Chief Executive Helen Dickinson highlighted that with the spectre of a no deal Brexit, many consumers are holding off from all but essential purchases, putting further pressure on retailers.
She added: “If the government wants to support consumers and retailers, they should make sure they take no-deal off the table, while also addressing the public policy costs such as business rates, that prevent shops from investing in their retail offering.”
A sperate report over the weekend suggested the retail sector is set for its toughest Christmas in a decade amid Brexit uncertainty, high property taxes and deep discounting.
The chair of one national retailer with more than 200 stores told The Mail on Sunday that the high street economy was “absolutely atrocious” and 2019 would be “the worst Christmas since Woolworths collapsed” back in 2008 as the perfect storm takes its toll on businesses.
He added: “The sales numbers are terrible and this whole political uncertainty has become a joke.”
Retailers had been set to receive some respite on business rates, but legislation designed to ensure that the amount paid by bricks & mortar operators was reassessed every three years, rather than five, failed to make it through Parliament last week.
NAM Implications:
- No surprises then for NAMs with a realistic nose for relevant detail…
- …10% decline in footfall in the last seven years to “the monumental changes that have occurred in our retail trading landscape over the past decade”.
- …need any more reasons?
- (think continuing fallout from the 2008 global financial crisis…)
- Meanwhile, any Brexit ‘fix’ will cause the uncertainty and depressed demand to continue…
- …until a major EU restructuring (currency & politics) takes place…
- Meanwhile, a ‘Blue Christmas’ has to be on the cards…
