The British Retail Consortium (BRC) reported that total U.K. retail foot traffic, as measured by BRC-Sensormatic IQ data, increased by 1.8 percent in July year-over-year (YoY), reversing the negative trend in June when traffic was down 1.9 percent for the month year-over-year (YoY).

“July saw modest growth in footfall numbers in all locations across most major cities in the U.K., with Scotland and the Northeast leading the way,” said Helen Dickinson, chief executive of the BRC. “The rainy start to the summer holidays drove many people off the streets and into the shops, in contrast to last year’s heatwave, which kept people outside in the sun.”

Dickinson noted that the recovery in international tourism continued to drive shopper numbers up in major cities in the U.K.

“The Government should capitalize on this by reintroducing a tax-free shopping scheme, as exists in all other European Union countries; this would encourage more visitors and stimulate more spending, boosting economic growth and employment,” Dickinson continued.

The channel breakdown shows a shift toward outlet stores:

  • High Street retail foot traffic increased 1.6 percent in July (YoY), but the anemic growth remained a percentage point above the 0.6 percent increase in June;
  • Retail Parks saw traffic increase by 1.4 percent in July (YoY), compared to a 2.6 percent decrease in June;
  • Shopping Center traffic increased by 0.2 percent in July (YoY), compared to a 4.2 percent decrease in June; and
  • Retail foot traffic at Other Retail locations increased by 8.6 percent, driven by increased shopping at other outlet sites.

Of the U.K. nations, Scotland reportedly saw the highest YoY increase in retail foot traffic with an increase of 5.9 percent for the month, followed by England with a 1.8 percent increase for July YoY and Northern Ireland with a 1.4 percent increase. Wales saw a YoY decrease of 0.1 percent in July.

“Footfall saw a bounce back into positive figures in July, reversing the slowdown experienced in May and June. While retailers will welcome the uptick in shopper traffic, it will be with a sense of practical positivity,” said Andy Sumpter, retail consultant for the EMEA, Sensormatic Solutions. “Many will be mindful they continue to serve a cost-of-living consumer, who remains cautious and may well become more so with the prospect of further interest rates threatening spending power in the mid- to long-term.”

Sumpter said Sensormatic Solutions data showed that much of the recovery in retail foot traffic in July was shored up by the strong performance in outlet retail, as shoppers turned to discounters to make their money go further. Sumpter further explained that this puts further pressure on retailers to shoulder the burden of growing price sensitivity and discounting merchandise to drive demand.

“Even in the context of rising price sensitivity, discounting remains just one of many levers retailers can pull,” he suggested. “By doubling down on value-driven but experience-led propositions, retailers can build on the store’s revival as the shopping channel of choice.”

Photo courtesy BRC