UK retail footfall decline eases in July - BRC

UK retail footfall dipped in July but the decline eased markedly from a month earlier, according to figures released on Friday by the British Retail Consortium and Sensormatic.

Shops in south London

Source: Sharecast

Total footfall fell 0.4% year-on-year, but this was an improvement on June's 1.8% drop.

On high streets, footfall was down 1.7% last month, versus a 3% fall in June. Meanwhile, footfall at retail parks rose 1.7% in July following a 1.1% decline in June.

Footfall at shopping centres ticked down 0.3% but this was an improvement on June’s 1.6% drop.

BRC chief executive Helen Dickinson said: "July failed to bring about the summer boost in shoppers many retailers had hoped for. Instead, footfall dipped in July for the second consecutive 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.

"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. While government’s plan to reduce business rates for most retail, hospitality and leisure premises is a step in the right direction, only a substantial cut will truly benefit communities nationwide and help bring thousands of empty shops back into use.

"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, said: "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."

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