UK retail footfall decline eases as tourism boosts high streets

(Alliance News) - The year-on-year decline in UK retail footfall eased last months, while visitor numbers rose in high streets alone on a rise in international tourism, according to a report on Friday.

The latest British Retail Consortium and Sensormatic IQ monitor showed UK retail footfall fell 1.9% on-year in June, abating from a 2.8% decline in May. It was, however, worse than the three-month average fall of 1.1%.

Per type of retail site, it was a better day for those located outdoors. In high streets, footfall increased 0.6% year-on-year in June, improving from a 0.5% decline in May. That was, however, a worse outcome than the three-month average rise of 1.1%.

Shopping centre footfall was down 4.2% year-on-year in June, easing from a 4.8% decline in May. In retail parks, footfall was down 2.6% on a year earlier, improving from a 4.1% year-on-year slump in May. Shopping centre footfall in June lagged the three-month rise of 2.9%, while in retail parks, it undershot the average growth of 1.8%.

"Footfall was down on 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," British Retail Consortium Chief Executive Helen Dickinson commented.

Sensormatic analyst Andy Sumpter said June was a month when inflation pressure took hold.

"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 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," Sumpter said.

By Eric Cunha, Alliance News news editor

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