UK Retailers Face Tough Times Ahead

  • High street footfall remains 23% below pre-pandemic levels in February 2022
  • London and major Northern cities hit worst with Oxford Street down 46%
  • Manchester’s Market Street down 38%, Newcastle’s Northumberland Street down 37%
  • Buchanan Street in Glasgow down 25%
  • Guildford, Leeds and Brighton see increases of 28%, 7% and 2% respectively
  • Rising costs to impact retailers from 1 April
  • Retailers face national minimum wage and national insurance increase
  • End of Covid support schemes adds pressure on businesses

High street footfall remains 23% below pre-pandemic levels in February 2022, according to RSM’s analysis of Datscha data. London and major Northern cities have been hit the hardest, with Oxford Street down 46%. Manchester’s Market Street saw a 38% decline, Newcastle’s Northumberland Street fell 37%, and Buchanan Street in Glasgow dropped by 25%. Guildford and Brighton experienced increases of 28% and 2% respectively compared to pre-pandemic levels. Rising costs, including the national minimum wage and national insurance increase from 1 April, are set to impact retailers further. The end of Covid support schemes adds to the challenges faced by businesses. RSM suggests that retaining staff and investing in technology will be crucial for recovery.

Factuality Level: 8
Factuality Justification: The article provides accurate information about footfall levels in various cities and offers insights from an expert on the potential impact of rising costs on retailers. It includes relevant data and analysis, but it could be improved by providing more context or sources for some claims (e.g., the ‘post-pandemic behavioral shift’ to online shopping).
Noise Level: 3
Noise Justification: The article provides relevant information about footfall levels in various cities and offers some analysis on factors affecting them, but it could benefit from more detailed data or examples to support its claims and explore potential solutions for retailers facing challenges.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the impact of various factors such as rising costs, international travel restrictions, and changes in consumer behavior on footfall levels in UK high streets, which can affect retailers’ revenue and potentially impact financial markets related to the retail industry.
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 the impact of the pandemic and cost of living crisis on footfall levels.

Reported publicly: www.retailsector.co.uk