UK retail footfall falls 0.4% in July, BRC urges rate cuts

UK retail footfall has declined by 0.4 per cent year-on-year (YoY) in July, showing an improvement from June’s 1.8 per cent drop, according to British Retail Consortium (BRC)-Sensormatic data.

High Street footfall fell by 1.7 per cent YoY, easing from a 3 per cent decline in June. Retail Parks recorded a 1.7 per cent YoY increase, rebounding from a 1.1 per cent fall in the previous month. Shopping Centres saw footfall dip by 0.3 per cent YoY, improving from June’s 1.6 per cent drop.

Regionally, Wales was the only nation to post growth, with a 0.4 per cent YoY rise in footfall. England saw a 0.3 per cent decline, Scotland dropped 1.3 per cent, and Northern Ireland recorded the steepest fall at 3 per cent, BRC said in a release.

Persistent shop vacancies—with around one in seven stores empty—remain a barrier to revitalising shopping destinations, according to Helen Dickinson, chief executive of the British Retail Consortium. While welcoming the government’s plan to reduce business rates, she called for a substantial cut to deliver meaningful benefits for communities and revive empty shops. She also stressed that many smaller retailers depend on larger anchor stores to draw visitors, cautioning that upcoming reforms must ensure no store faces higher costs to avoid potential closures or price increases.

“July failed to bring about the summer boost in shoppers many retailers had hoped for. Instead, footfall dipped in July for the second consecutive year. There were bright spots, with Manchester, Birmingham, and Leeds all showing an improvement in numbers of store visits. Retail parks continued to outperform other destinations with some seeing big brands opening new outlets,” Dickinson said.

“The early-July heatwave, following a scorcher in June, may have lifted leisure footfall more than retail, while one year into a new Labour government, consumer sentiment remains cautious. The underlying footfall trend may be improving, but this is still negative growth on negative 2024 figures - raising the question: are shoppers returning, or simply shopping around more as they try to spend less? Either way, retailers who can offer value, experience, and convenience may be best placed to convert tentative footfall into lasting growth,” Andy Sumpter, retail consultant EMEA for Sensormatic, commented.

ALCHEMPro News Desk (HU)