Helen Dickinson, Chief Executive of the British Retail Consortium, explained that July failed to bring about the summer boost retailers had hoped for. Instead, footfall dipped in July for the second consecutive year.
According to British Retail Consortium (BRC) Sensormatic data, showed footfall declines YoY across the UK with 0.3% in England, 1.3% in Scotland, and the largest decrease of 3.0% in Northern Ireland. Only Wales saw a 0.4% increase compared to the previous year.
“There were bright spots, with Manchester, Birmingham, and Leeds all showing an improvement in numbers of store visits. Retail parks continued to outperform other destinations with some seeing big brands opening new outlets,” said Dickinson.
Whilst the government’s plan to reduce business rates for most retail, hospitality and leisure organisations, is a step in the right direction, but Dickinson said that “only with a substantial cut will truly benefit communities nationwide and help bring thousands of empty shops back into use”. She added: “Customers want a vibrant shopping destination, but with around one in seven shops lying empty, more needs to be done to turn town and city centres into places people want to visit. 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.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented: “Total retail for the UK remains stubbornly negative at -0.4%. Retail parks were positive yet again, at +1.7%, perhaps yielding the benefits of greater occupancy and continued new openings. High Streets and Shopping Centres saw softer declines than last month of -1.7% and -0.3% respectively. Other events such as the Oasis tour have given local uplifts in traffic, only for it to slide away shortly after.
“The early-July heatwave, following a scorcher in June, may have lifted leisure footfall more than retail, while one year into a new Labour government, consumer sentiment remains cautious. 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.”
