UK retail results have shown a sector against the ropes as early year promise has been replaced by sobering footfall figures.
Covering the four weeks 28 April – 25 May 2019, footfall declined by 3.5% in May, compared to the same point last year when it declined by 0.4%.
On a three-month basis, footfall decreased by 0.7%. The six and 12–month averages are at -1.3% and -1.4% respectively.
High street footfall declined by 4.8%. Following from the increase of 0.5% in May last year. The three-month average decline is 0.8%.
Retail park footfall decreased by 0.8%, following from May 2018 when footfall increased by 0.6%. The three-month average growth is 1.0%.
Shopping centre footfall declined by 3.6%, following May 2018’s decline of 2.9%. This was steeper than the three-month average decline of 2.1%.
Helen Dickinson chief executive, British Retail Consortium, said: “The UK experienced the worst footfall figures in six years, with declines in every region, and across High Streets, Retail Parks and Shopping Centres. This reflects our recent sales data, which showed the largest drop in retail sale on record. The colder weather, as well as ongoing political and economic uncertainty, made many consumers think twice before heading out to the shops this May.
“While consumers stayed away from the shops this May, retailers still had to pay the full cost of Business Rates, which are levied regardless of whether a store makes a penny at the till. These rising costs are making many retailers rethink investment decisions, as well as contributing to store closures up and down the country. The Government must act to reform this anachronistic tax system or it will be the consumers who suffer the shuttered windows at their local shopping locations.”
Diane Wehrle, Springboard marketing and insights director, said: “The -3.5% drop in footfall in UK bricks and mortar destinations in May is a poor result and is consistent with the drop in sales for the month. However, we should note the year on year comparisons are off the back of a particularly strong result in May last year of -0.4% which was boosted by warm weather and special events and followed on from a challenging April marred by bad weather and loss of seasonal sales due to the early March Easter.
“All destination types found it much tougher this May to attract customers, but the fact that the greatest impact was felt by high streets with a drop in footfall of -4.8% is not a surprise given the much poorer weather than in May last year. Footfall worsened across all parts of the day, but the most significant drop occurred post 5pm, moving from a rise of +1.9% in May last year to a decline of -4.5% this year. It is clear that consumers are being ever more discerning in their dining habits, and recent failures in the sector indicate both the level of competition and suggests that the everyday dining operators need to provide a more tempting food offer keep customers for the post 5pm spend slot.
“Nonetheless, it is really important to note the longer term trend, with footfall declining by just -1.1% over the five-month period since January. This a much improved position on the drop of -2.4% over the same five-month period last year, showing us that the reduction in customers visiting retail destinations this year has slowed, a more positive result than might have been expected.”
