August footfall drops as inflation bites

Consumer confidence seems to have plummeted as recent figures show that total footfall dropped by 12.4 per cent in August compared to the same month in 2019.

This is a 1.8 percentage point improvement on July, but marginally worse than the three-month average decline of 12.3 per cent.

The latest BRC-Sensormatic IQ Footfall Monitor, shows high street footfall declined by 13.6 per cent compared to three years ago. To provide a meaningful comparison, all figures are compared with the same period pre-pandemic.

Retail parks saw footfall decrease by 4.1 per cent versus 2019, but this is five percentage points better than last month’s rate and an improvement on the three-month average decline of 23.6 per cent.

Meanwhile, footfall in shopping centres dropped 22.7 per cent compared to three years ago. This is a 2.1 percentage point increase on last month and better than the three-month average decline of 23.6 per cent.

While footfall in August continued its recovery towards pre-pandemic levels, the rate of improvement slowed, said Helen Dickinson OBE, chief executive of the British Retail Consortium.

“Many people remain concerned about the rising cost of living and the price of their energy bills, which has kept them away from visiting high streets and town centres,” she added.

“With consumer confidence at historic lows, stores continue to focus on converting customer footfall into retail sales. Big events in Birmingham and Edinburgh saw more notable advancements to footfall, as the Commonwealth Games and the Edinburgh Fringe brought more shoppers in.”

With the new Prime Minister coming into power shortly, she is urging the government to include a freeze in the business rates multiplier next year, “otherwise the 10 percent inflationary increase in rates bills will lead to higher prices for customers.”

Commenting on the figures, Andy Sumpter, Retail Consultant EMEA for Sensormatic Solutions, said that August footfall on the whole remained resilient with performance improving against pre-pandemic levels compared to July, boosted in part by August staycations and rising tourist numbers returning.

“However, whilst the outlook for August remained cheery, retailers will be looking ahead to the Autumn – and retail’s Golden Quarter of Christmas trading – with an air of caution as the cost-of-living crisis continues to play out, and they await to see what packages of support will be offered to consumers the ease the burden on household budgets once the new PM is announced next week,” Sumpter said.