Retailers suffered another setback last month as cautious consumers prioritised leisure activities over shopping during the hot weather.
BRC-Sensormatic data shows retail footfall across the UK decreased by 0.4% year-on-year in July, compared to a 1.8% fall the previous month.
Footfall slid 1.7% on both High Streets and Retail Parks, while Shopping Centres saw a 0.3% decline.
“July failed to bring about the summer boost in shoppers many retailers had hoped for,” said Helen Dickinson, Chief Executive of the British Retail Consortium (BRC).
She highlighted that around one in seven shops are now lying empty, with more needed to be done to turn town and city centres into places people want to visit.
“While the government’s plan to reduce business rates for most Retail, Hospitality and Leisure premises is a step in the right direction, only a substantial cut will truly benefit communities nationwide and help bring thousands of empty shops back into use,” said Dickinson.
“Many smaller shops and businesses rely on larger anchor stores to attract footfall so the upcoming reforms must also ensure no store pays more, or risk seeing many larger stores close their doors or raise their prices.”
Meanwhile, Andy Sumpter, Retail Consultant EMEA for Sensormatic, noted that the recent hot weather may have lifted leisure footfall more than retail, while one year into a new Labour government, consumer sentiment remains cautious.
He added: “The underlying footfall trend may be improving, but this is still negative growth on negative 2024 figures – raising the question: are shoppers returning, or simply shopping around more as they try to spend less? Either way, retailers who can offer value, experience, and convenience may be best placed to convert tentative footfall into lasting growth.”
NAM Implications:
- Depending on the weather can be a strategic risk.
- Better to react fast on its arrival…
- (In case anyone failed to notice, we are operating in unprecedented times…
- …with a dose of added uncertainty, care of Trump-Tariffs)
- Any wonder that the consumer remains cautious?
- Despite the weather…
