UK retail footfall dips 1.9% YoY in June; high streets show resilience

Despite the overall drop, high streets offered a glimmer of hope with footfall increasing by 0.6 per cent YoY in June, an improvement from the 0.5 per cent decline in May. Nonetheless, this increase did not match the three-month average rise of 1.1 per cent.

In contrast, retail parks and shopping centres saw more severe decreases in footfall in June. Retail parks recorded a drop of 2.6 per cent YoY, which, despite being an improvement from the 4.1 per cent dip in May, was worse than the three-month average increase of 1.8 per cent. Meanwhile, shopping centres reported a 4.2 per cent decline in footfall, up from the 4.8 per cent YoY fall in May, but still lagging the three-month average growth of 2.9 per cent.

Regionally, Scotland recorded the smallest YoY decline in footfall, with a drop of 0.9 per cent, followed closely by Wales at 1.0 per cent. England registered a 1.9 per cent decrease, while Northern Ireland suffered the largest blow with footfall plummeting 3.7 per cent.

This latest data highlights the continuing challenges facing UK's bricks-and-mortar retail sector, which is grappling with the long-term impacts of the COVID-19 pandemic. Despite some signs of recovery, the overall trend suggests a slower rebound than anticipated.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Footfall was down in June last year as the hot weather meant that people opted to enjoy the outdoors. Shopping patterns are still finding a new balance, as the high cost of living is affecting people’s habits and choices. We saw fewer visits to shopping centres and retail parks than last year. But High Street locations were busier and footfall in major cities also improved, thanks to an increase in international tourism.

“The UK is the only European destination without tax-free shopping: Government must capitalise on the uptick in tourism by reintroducing VAT relief for overseas visitors to boost the UK’s attractiveness compared to other destinations and stimulate spending. Government should also seek to mitigate the impact of the slew of cost pressures continuing to bear down on the industry, including new regulation and an inflationary whack to business rates next spring.”

Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, commented: "We saw the far-reaching ripple effect of April’s UK inflation peak taking hold this month, with the three-month rolling average for UK footfall in June dipping down into negative figures (-1.1 per cent) for the first time this year. While UK shopper traffic made a marginal gain in June compared to May, which will be some positive news for retailers, the ongoing cost-of-living pressure is set to continue to impact shopper behaviour and undermine consumer confidence. However, with the tide of food price inflation looking like it is finally–and albeit slowly—starting to recede, retailers will be looking ahead to July, and hoping to benefit from ambient footfall from the school holiday period.”

Fibre2Fashion News Desk (KD)