The UK's prolonged summer heatwave continued to weigh on bricks-and-mortar retail in July, with high streets suffering another sharp decline in shopper numbers as soaring temperatures encouraged consumers to stay home and shop online.
New data from the British Retail Consortium (BRC) and Sensormatic Solutions showed that overall retail footfall across the UK fell by 2.1 per cent year-on-year in July, following a 1.7 per cent decline in June.
High streets recorded the steepest drop, with footfall down 3.8 per cent compared with July last year, although the decline eased slightly from the 6.2 per cent fall recorded in June. Shopping centres also experienced lower visitor numbers, while retail parks bucked the trend by returning to growth.
Helen Dickinson, chief executive of the BRC, said the fourth heatwave of the year continued to suppress retail activity, particularly in city centres.
"The heatwave continued to bear down on retail footfall in July, with high streets worst affected," Dickinson said.
"London was hit particularly hard as soaring temperatures made tube and train travel less attractive, with some commuters and shoppers opting to stay home."
The capital recorded a 5.3 per cent drop in shopper numbers, significantly worse than the 3 per cent decline across England as a whole. In contrast, areas that experienced milder weather fared better, with footfall rising 2.7 per cent in Scotland and 2.5 per cent in Northern Ireland, while Wales remained broadly flat.
Dickinson said increasingly frequent periods of extreme heat underline the need for retailers to adapt their estates.
"Climate change continues to deliver more and more extreme temperatures in the UK," she said.
"Retailers are responding by investing in both mitigations – such as more air conditioning and more efficient refrigeration units – and in sustainability initiatives aimed at reducing carbon emissions.
"Unfortunately, business rates often punish stores for such investments, showing the need for government to look again at this broken system."
The latest figures highlight how the summer weather is creating winners and losers across the retail sector. Retailers with strong online operations have been better placed to capture demand as consumers avoid travelling during periods of extreme heat.
Fashion and home retailer Next this week upgraded its annual profit guidance for the third time this year, citing strong summer demand and robust online sales, although it acknowledged that trading in its physical stores weakened during the hottest periods.
The warm weather has also boosted sales of seasonal products, including chilled food and drinks, fans and cooling appliances, benefiting supermarkets and electrical retailers.
However, categories such as furniture and garden products have continued to struggle, with consumer spending remaining under pressure from the cost-of-living squeeze, a subdued housing market and dry conditions that have dampened demand for plants and other gardening products.