Scotland experienced the least decline in footfall among the UK nations, with a decrease of -0.9%. Following closely behind was Wales, which saw a decline of -1.0%, while England experienced a decrease of -1.9%, and Northern Ireland saw a decline of -3.7%.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), highlighted that footfall in June was lower compared to the same period last year due to the hot weather, which prompted people to opt for outdoor activities instead. She emphasized that shopping patterns are still undergoing a transformation as the high cost of living affects people’s habits and choices. Shopping centers and retail parks witnessed fewer visits compared to the previous year, but there was an increase in footfall in High Street locations and major cities, attributed to a rise in international tourism.
According to Dickinson, the lack of tax-free shopping in the UK makes it less attractive compared to other destinations in Europe. As a result, she urged the government to reintroduce VAT relief for overseas visitors to enhance the UK’s appeal 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,” she added.
Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, analyzed the effect of UK inflation on footfall. He noted that April’s inflation peak had a far-reaching ripple effect, leading to negative figures (-1.1%) for the three-month rolling average of UK footfall in June, the first time this occurred in the year.
Although June showed a marginal improvement compared to May, Sumpter emphasized that the ongoing cost-of-living pressure would continue to impact shopper behavior and erode consumer confidence. However, with food price inflation slowly starting to recede, retailers are hopeful for an increase in footfall in July, driven by ambient traffic during the school holiday period.
