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Footfall declines in July for second consecutive year

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In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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UK footfall fell by 0.4% year on year in July, according to data from the British Retail Consortium–Sensormatic IQ, marking a second consecutive year of decline for the month.

The figure was a slight improvement on June’s 1.8% fall. High street footfall declined by 1.7%, compared with a 3.0% drop in June. Shopping centres saw a 0.3% year-on-year fall, up from a 1.6% drop the previous month.

Retail parks continued to outperform other destinations, with footfall rising by 1.7% – the only segment to record year-on-year growth.

Geographically, footfall in Wales rose by 0.4%, but declines were recorded across the other UK nations: down 0.3% in England, 1.3% in Scotland, and 3.0% in Northern Ireland.

British Retail Consortium chief executive Helen Dickinson said: “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.

“Customers want a vibrant shopping destination, but with around one in seven shops lying empty, more needs to be done to turn town and city centres into places people want to visit. While government’s plan to reduce business rates for most retail, hospitality and leisure premises is a step in the right direction, only a substantial cut will truly benefit communities nationwide and help bring thousands of empty shops back into use.

She added: “Many smaller shops and businesses rely on larger anchor stores to attract footfall so the upcoming reforms must also ensure no store pays more, or risk seeing many larger stores close their doors or raise their prices.”

Andy Sumpter, retail consultant for Europe, the Middle East and Africa at Sensormatic, said: “England’s Lionesses might have won the Women’s Euros in July, but footfall has not yet come home it seems.

“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.”

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