Key facts
- UK high street footfall decreased by 3.8% year-on-year in July due to high temperatures.
- Shopping centre visits declined, while retail park visits saw growth.
- Overall retail footfall decreased by 2.1% compared to the previous year.
- London was disproportionately affected, with a 5.3% drop in shoppers.
- Retailers are investing in air conditioning and sustainability measures to cope with extreme weather.
UK high streets experienced a significant drop in shopper numbers during July, with footfall down 3.8% year-on-year, largely attributed to a severe heatwave. This follows a 6.2% decline in June. While shopping centres also saw fewer visitors, retail parks experienced growth. The extreme temperatures, reaching over 35°C in some areas, deterred shoppers, particularly in London where travel on public transport became less appealing. Overall, visits to all shopping destinations decreased by 2.1% compared to the previous year.
Helen Dickinson, chief executive of the British Retail Consortium, noted that climate change is leading to more extreme temperatures in the UK. Retailers are responding by investing in measures like air conditioning and more efficient refrigeration, as well as sustainability initiatives. However, Dickinson highlighted that business rates can penalize such investments, suggesting a need for government reform.
The heatwave has created differing fortunes for retailers. While those reliant on physical stores may suffer, sectors like fashion, supermarkets, and technology sellers are expected to benefit from increased demand for cold food, drinks, and cooling appliances. Conversely, furniture and garden plants are facing challenges due to the extreme heat and dry weather, compounded by the cost of living crisis and a slow housing market.
Fashion retailer Next reported a third upgrade to its profit guidance this year, citing benefits from sunny weather and pent-up demand, particularly from its sales of other brands online. However, the company noted that its in-store trading faltered during the heat.