As the UK grappled with one of the wettest summer months on record, the number of people heading out to the shops fell for the first July in 14 years.
Springboard, a retail analysis firm, reported that overall footfall was down by 0.3%, marking the first drop in July since 2009. High Streets were hit hardest, but shopping centres and retail parks saw an increase in visitor numbers.
Besides the rain, Springboard noted that the rising cost of living and rail disruption contributed to the fall in footfall, with it warning that shoppers may continue to stay away even if the weather improves.
Diane Wehrle, insights director at Springboard, stated that consumers’ attention was now likely to turn towards planning for Christmas spending, which may well dampen footfall further in the latter part of the summer.
Wehrle added that July’s figures also appeared to “demonstrate the harsh reality of the impact of interest rate rises on consumers, combined with rain and a rail overtime ban”.
The Bank of England has been raising interest rates to cool down the economy in a bid to bring down inflation. However, Wehrle noted that the rise in mortgage rates has begun to “seep into people’s finances”, putting a further squeeze on people’s spending power.
The Bank raised interest rates for the 14th time since December 2021 today despite signs that inflation is starting to ease.
NAM Implications:
- Weather, job uncertainties, cost-of living, and now the Bank Rate increase to 5.25%…
- Time for businesses to increase focus on obtaining and maintaining their fair share of available demand…
- …going back to basics and delivering more than it says on the tin, every time.
- And better than available competition…
- Unless one prefers to await a return to Normal?
