UK Retailers Feel the Heat
- Footfall drops in July due to heatwave
- 10.8% decrease compared to 2017
- Scotland and Northern Ireland saw 6.5% less shoppers
- South West England fell by 7.8%
- Midlands dropped by 9.2%
- Northern England and London and South East declined by 10% and 15.9% respectively
- Scotland and Northern Ireland saw a 2.8% increase in shoppers
- South West England and Wales had 2.5% more footfall
- London and South East welcomed 2.1% more shoppers
- Overall increase of 3.4% compared to June 2018
- Retail spending unlikely to improve this year
- 20 profit warnings among listed retailers in 2018, double the number from 2017
The UK high street saw a significant drop in footfall during July, with customers staying indoors due to the heatwave. According to Ipsos Retail Traffic Index, all regions experienced a decrease in shoppers compared to July 2017. Scotland and Northern Ireland had 6.5% fewer visitors, while South West England fell by 7.8%. The Midlands saw a drop of 9.2%, and Northern England and London and the South East declined by 10% and 15.9% respectively. However, there were some positive signs: Scotland and Northern Ireland had 2.8% more shoppers, and South West England and Wales experienced a 2.5% increase in footfall. Compared to June 2018, overall footfall increased by 3.4%. Dr. Tim Denison, Ipsos retail intelligence director, expressed disappointment at the results, stating that the hot weather and summer sports events failed to boost high street sales. He also mentioned the base rate hike, subdued pay awards, and low consumer confidence as factors affecting retail spending for the rest of 2018.
Factuality Level: 9
Factuality Justification: The article provides accurate information about footfall decline in different regions during July compared to previous years and includes expert commentary on the reasons behind it. It also gives specific numbers for comparison with June 2018.
Noise Level: 3
Noise Justification: The article provides relevant information about footfall decline in different regions due to heatwave and its impact on retailers, but it lacks a comprehensive analysis of long-term trends or possibilities, antifragility, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, actionable insights, and solutions. It also does not explore consequences on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Retailers
Financial Rating Justification: The article discusses the impact of a heatwave on footfall in various regions, which affects retailers’ performance and consumer spending, leading to potential financial consequences for these businesses.
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 text, but the article discusses a decrease in high street footfall due to the heatwave which had a minor impact on retail performance.
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