Key facts
- Total UK retail footfall decreased by 1.7% year-on-year in August.
- High street footfall saw a sharper decline of 3.1% compared to the same period last year.
- Footfall in retail parks increased by 1% year-on-year.
- London recorded the steepest drop in retail footfall among English regions, falling by 4.9%.
- Retailers are requesting tax breaks, specifically urging the Chancellor to reduce National Insurance Contributions and reform business rates.
British retailers have appealed to Chancellor John Healey for financial assistance as August's footfall data revealed a continued year-on-year decline, despite cooler weather conditions. The British Retail Consortium (BRC) reported a 1.7% drop in total footfall for August, a slight improvement from July's 2.2% decrease, but still a cause for concern.
High streets experienced the most significant downturn, with footfall slumping by 3.1% annually. In contrast, retail parks saw a modest 1% increase in shopper visits. London was particularly hard-hit, with retail footfall falling by 4.9%, while the east of the country registered a 1.9% gain.
Andy Sumpter, head of analytics at Sensormatic, suggested that the cooler August temperatures may have contributed to the marginal improvement in footfall compared to July's heatwave, which had previously deterred in-person shopping. However, he emphasized that the core challenge for retailers remains converting this improved traffic into sales, especially as the crucial holiday trading season approaches.
The BRC is advocating for the Treasury to implement tax breaks, including unwinding recent increases to National Insurance Contributions (NICs) and reforming business rates. BRC chief executive Helen Dickinson stated that retailers require tangible cost reductions rather than mere assurances, highlighting the impact of rising business rates and energy costs on both businesses and consumers.
While Andy Burnham has expressed intentions to revitalize high streets, his focus has so far been on hospitality and entertainment venues. Retailers are pressing the government for concrete actions to alleviate cost pressures and support investment, jobs, and communities.