Retailers Call for 'Lifeline' Budget Measures as Cooler Weather Fails to Lift UK Footfall
Key Takeaways
- •UK total retail footfall declined 1.7% year on year in August, a slower fall than July's 2.2% drop.
- •High street footfall fell 3.1% while retail park visits rose 1%, and London recorded the worst regional decline at 4.9%.
- •The BRC has called on Chancellor John Healey to reverse employer National Insurance hikes and reform business rates in his first Budget.
- •Cooler temperatures in August likely helped footfall recover slightly after July's heat drove shoppers toward e-commerce.
- •Retailers face pressure to turn modest footfall improvements into real sales ahead of the Christmas season, which accounts for a disproportionate share of annual revenue.
Britain's retailers have called for a "lifeline" from Chancellor John Healey after footfall fell again in August despite cooler temperatures.
Total footfall in the UK dropped 1.7 per cent year on year last month, according to data from the British Retail Consortium (BRC). Although shopping traffic declined at a slower pace than July's 2.2 per cent yearly fall, the trade body said the figures serve as a reminder that the Treasury must deliver tax breaks to high street businesses at next month's Budget.
High streets suffered the steepest decline, with footfall slumping 3.1 per cent year on year. Retail parks were the one bright spot, recording a one per cent increase in visits compared with the same period last year, continuing a longer-running pattern in which out-of-town destinations with free parking and larger stores have outperformed town-centre shopping streets.
London was the worst-performing English region for retail footfall in August, falling 4.9 per cent, while the east of the country posted a gain of 1.9 per cent.
Andy Sumpter, head of analytics for EMEA at Sensormatic, which produces the BRC's data, said August's slight improvement in footfall was likely due to cooling temperatures. July's sweltering heat had driven Brits away from in-person shopping and given a boost to e-commerce platforms, a shift that has weighed on physical store visits across the sector.
Sumpter said August's marginally rosier footfall figures are likely to ease some of the huge pressures facing retailers, which include higher business rates bills and soaring employment costs.
"The challenge for retailers remains unchanged: converting a modest improvement in footfall into meaningful spend as the industry's most important trading season draws nearer," he said, referring to the run-up to Christmas, which typically accounts for a disproportionate share of retailers' annual sales.
Healey urged to boost retailers
The BRC has urged Chancellor John Healey to unwind some of the hikes to employer National Insurance Contributions (NICs) introduced by his predecessor Rachel Reeves, while other trade bodies have called on the government to reform business rates, the property-based tax that retailers have long argued places a heavier burden on physical stores than on online sellers.
Andy Burnham has pledged to rejuvenate Britain's high streets, but his policy commitments so far have focused on pubs, bars and live music venues.
Helen Dickinson, the BRC's chief executive, said: "Retailers don't need warm words, they need lower costs. With his first Budget weeks away, Chancellor Healey has a chance to throw Britain's high streets a lifeline.
"Retail faces cost pressures and households are watching every penny. Government action on business rates and energy costs would help keep prices down, support investment, and sustain the jobs and communities that retail underpins across the country."
