Middle East conflict is impacting the household budgets which led to weaker-than-expected retail footfall in the UK last month, shows industry figures released today (April 10) .
According to BRC-Sensormatic data of five weeks from March 1 to April 4, total UK footfall increased by 2.4% in March (YoY), up from -4.7% in February.
High Street footfall increased by 2.0% in March (YoY), up from -5.4% in February while retail park footfall increased by 2.5% in March (YoY), up from -3.1% in February.
Shopping Centre footfall increased by 2.6% in March (YoY), up from -5.5% in February.
Footfall increased year-on-year across all nations: up 1.6% in Wales, 2.3% in England, 3.2% in Scotland, and the largest increase of 4.9% in Northern Ireland.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, “With Easter and the school holidays falling earlier this year, retailers were expecting a stronger boost to footfall than March delivered.
"Shopping centres outperformed other locations, and cities like Manchester continued to do well, but overall growth fell short of expectations.
"Warmer weather might help sustain footfall in the months ahead, but without an Easter uplift in April, momentum is far from guaranteed.
“Looking ahead, the conflict in the Middle East is weighing heavily on both retailer and consumer confidence, with further pressure on the cost of living potentially likely to hit footfall. Government can play its part supporting households by easing pressures created by domestic policy costs.
"Cutting these costs would free up retailers to invest more in value, experience and their in-store offer – the things that help footfall and create more vibrant local economies.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, “March brought a welcome return to growth for UK retail footfall, with total retail rising by +2.4% – the first positive month in nearly a year. On the surface, this marks an encouraging shift in momentum, however, the improvement needs to be viewed in context.
“Much of March’s uplift was driven by an Easter boost, with Easter week falling into this year’s March trading period. Last year’s comparison was also relatively weak due to the later timing of Easter, amplifying the apparent growth. Without the final week’s Easter bump, March would likely have remained in negative territory – raising questions over how April may perform, particularly against much stronger comparables last year.
“Ongoing pressures continue to shape consumer behaviour. Declining confidence, geopolitical uncertainty and rising living costs – especially fuel – are still encouraging caution and fewer discretionary trips. March’s return to growth is a step in the right direction, but the real test will be whether footfall can hold once the Easter boost passes and tougher comparisons return.”