Retail Recovery Slower Than Expected
- British Retail Consortium warns that reopening is not a magic bullet for retail
- UK footfall decreased 53.4% year-on-year during the second week of reopening in England and NI
- Retail Parks saw the biggest improvement with a decrease of 28.4% year on year compared to May
- Shopping centre footfall declined by 60.7% year on year
- Total retail footfall increased 7.7% week on week
- Retailers may struggle without further increases in demand and government support
- UK footfall is heading in the right direction but still behind European trends
The British Retail Consortium has warned that reopening is not a magic bullet for the retail industry, despite an improvement in UK footfall since lockdown restrictions were lifted earlier this month. The BRC’s footfall tracker found that footfall decreased by 53.4% year-on-year during the second week of reopening in England and Northern Ireland, compared to a decrease of 81.6% year on year for May. High streets saw a decline of 58.1% year on year, while retail parks showed the most significant improvement with a decrease of 28.4% year on year compared to a decrease of 55% year on year in May. Shopping centre footfall declined by 60.7% year on year compared to 84.9% the previous year. Total retail footfall for Monday to Saturday increased by 7.7% week on week. Helen Dickinson, chief executive of British Retail Consortium, said that while there is improvement across all areas, it is unlikely that footfall will return to pre-pandemic levels anytime soon. She added that retailers may struggle without further increases in demand and government support to protect jobs and revive high streets and shopping centres. Andy Sumpter, retail consultant EMEA of ShopperTrak, said the UK’s retail recovery is heading in the right direction but still behind European trends.
Factuality Level: 8
Factuality Justification: The article provides accurate information from the British Retail Consortium’s footfall tracker and quotes from experts in the field. It presents data and analysis without sensationalism or opinion masquerading as fact.
Noise Level: 6
Noise Justification: The article provides relevant information about the current state of UK retail footfall after reopening from lockdown restrictions, but it lacks in-depth analysis or actionable insights. It mostly reports on recent events without questioning popular narratives or exploring long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector in the UK
Financial Rating Justification: The article discusses the improvement in footfall since lockdown restrictions were lifted, but also warns that retailers may struggle to make ends meet and highlights the need for government intervention to protect jobs and revive high streets and shopping centers. This impacts financial markets as it affects consumer spending and the overall economic recovery of the UK.
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 challenges faced by retailers due to the ongoing pandemic and its impact on footfall.
www.retailsector.co.uk