Retail Recovery Slows Down After Initial Spike
- Footfall improved in June compared to May but still below last year’s level
- High streets and shopping centres saw significant declines while retail parks were more resilient
- Reopening of stores led to a 40% increase in footfall, followed by slowdown in subsequent weeks
- Long queues and social distancing may be contributing factors
- Work from home, absent students and tourists impacting high streets and shopping centres
- Central London footfall down 80.8% compared to last year
Despite a significant improvement in footfall in June compared to May, it is still less than half the level of last year. High streets saw a decline of 65.1%, shopping centres 62.3% and retail parks experienced a decrease of 32.2%. The first week after reopening saw a 40% increase in footfall, but this slowed down to 6.6% and 2.4% in the following weeks. Long queues and social distancing measures may be contributing factors. Springboard Insights director Diane Wehrle warns that work from home policies, absent students, and tourists could continue to impact high streets and shopping centres, with Central London experiencing an 80.8% decline compared to last year.
Factuality Level: 7
Factuality Justification: The article provides accurate information from a reputable source (Springboard) and presents objective data on footfall decline in different types of shopping areas. It also includes expert commentary that adds context and analysis to the numbers. However, it could be improved by providing more details about the methodology used for measuring footfall and including perspectives from other sources or experts.
Noise Level: 3
Noise Justification: The article provides relevant information about the changes in footfall during June and offers insights from an expert on potential reasons for the slowdown after the initial spike. It also highlights the ongoing challenges faced by retailers due to social distancing measures and reduced consumer presence in high streets and shopping centers.
Financial Relevance: Yes
Financial Markets Impacted: Retail and real estate sectors
Financial Rating Justification: The article discusses footfall in various retail locations and its impact on the economic recovery of bricks and mortar retail, which affects financial markets and companies within these industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but it discusses the impact of COVID-19 on footfall and retail stores.
www.retailsector.co.uk