UK retail footfall remained below last year’s levels in August despite an improvement on July, with high streets continuing to experience the sharpest decline.
Latest figures from the British Retail Consortium and Sensormatic show total UK footfall fell 1.7% year-on-year during the four weeks from 2 to 29 August, compared with a 2.1% decline in July.
High street footfall dropped 3.1%, although this was an improvement on the 3.8% fall recorded a month earlier.
Shopping centres also remained in negative territory, with visitor numbers down 0.5% year-on-year, while retail parks were the only location type to record growth, with footfall rising 1%.
REGIONAL DIVIDE
England recorded the weakest performance among the four nations, with footfall down 2.1% compared with August last year.
Wales saw a 1.3% decline and Scotland was broadly flat at -0.1%.
Northern Ireland bucked the wider UK trend, with shopper numbers rising 2.8% year-on-year.
The figures come as retailers prepare for the crucial final months of the year, with the BRC calling for government action on costs ahead of the Budget.
Helen Dickinson, Chief Executive of the British Retail Consortium, says: “Footfall improved on the previous month, though still down on last year.
“The cooler temperatures played a key role, bringing shoppers back after a scorching July to stock up on essentials and back-to-school items. Retail parks were the standout performers but the overall picture shows high streets face an uphill battle.
“Retailers don’t need warm words, they need lower costs. With his first Budget weeks away, Chancellor Healey has a chance to throw Britain’s high streets a lifeline.
“Retail faces cost pressures and households are watching every penny. Government action on business rates and energy costs would help keep prices down, support investment, and sustain the jobs and communities that retail underpins across the country.”
‘CAUTIOUS ENCOURAGEMENT’
Andy Sumpter, Head of Consulting & Analytics – EMEA for Sensormatic, adds: “August delivered a modest improvement for UK retail footfall, with total visits down -1.7% year-on-year.
“While still firmly in negative territory, this marks a welcome improvement on both July and June, suggesting the pace of decline may be beginning to ease.
“However, it is worth remembering that this remains negative growth against last year’s already modest performance, underlining the continued pressure facing retailers.
“This performance was once again driven by Retail Parks, which recorded growth of +1.0%, making them the only retail destination to attract more visitors than a year ago.
“High Streets remained under the greatest pressure at -3.1%, while Shopping Centres were comparatively resilient at -0.5%.
“Above-average temperatures may have continued to influence behaviour, although conditions were less extreme than July’s record-breaking heat. Meanwhile, rising inflation, now at a two-year high, is likely placing renewed pressure on disposable incomes.
“With the industry’s most important trading period fast approaching, there are reasons for cautious encouragement, but not complacency. England continues to lag the other home nations, weighing on the overall UK result.
“The challenge for retailers remains unchanged: converting a modest improvement in footfall into meaningful spend as the industry’s most important trading season draws nearer.”
