The British Retail Consortium (BRC) reported that June retail foot traffic was down versus the comp period last year as the hot weather meant that consumers opted to be outdoors rather than shopping indoors.
“Shopping patterns are still finding a new balance, as the high cost of living is affecting people’s habits and choices, explained Helen Dickinson, chief executive of the BRC. “We saw fewer visits to shopping centers 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.”
Total U.K. retail foot traffic decreased by 1.9 percent in June year-over-year (YoY), up from negative 2.8 percent in May but worse than the three-month average decline of 1.1 percent.
- High Street retail foot traffic increased by 0.6 percent in June YoY, up from a negative 0.5 percent in May. While a positive trend sequentially, the June number is worse than the 3-month average increase of 1.1 percent growth.
- Retail parks saw retail foot traffic decrease 2.6 percent in June YoY, up from a negative 4.1 percent trend in May, worse than the 3-month average increase of 1.8 percent.
- Shopping center retail foot traffic decreased 4.2 percent in June YoY, up from a negative 4.8 percent trend in May but worse than the 3-month average increase of 2.9 percent.
Of the U.K. countries, Scotland reportedly saw the smallest year-over-year decrease in retail foot traffic with a decline of 0.9 percent, followed by Wales with -1.0 percent, England with -1.9 percent, and Northern Ireland with -3.7 percent versus the year-ago June period.
“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 retail foot traffic in June dipping down into negative figures (-1.1 percent) for the first time this year,” added Andy Sumpter, retail consultant EMEA for Sensormatic Solutions. “While U.K. 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 behavior 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 retail foot traffic from the school holiday period.”