UK Retail Sector Struggles Amidst Political Turmoil
- Retail footfall decreased by 9.9% year-on-year in September
- Footfall in London and south east dropped by 15.5% compared to the same period last year
- Non-food store visits declined -7.3% from August
- Consumer demand for retail goods has decreased due to Brexit uncertainty
The UK retail sector is facing a significant decline in footfall, with non-food store visits dropping by 9.9% year-on-year in September, according to the Retail Traffic Index by Ipsos Retail Performance. Compared to August, average weekly footfall also fell by 7.3%. The situation is particularly dire in London and the south east, where footfall dropped by 15.5% compared to the same period last year and 13.5% for the quarter. Dr. Tim Denison, director of Retail Intelligence at Ipsos Retail Performance, commented on the disappointing figures: ‘These results come after a surprisingly quiet August with sales remaining stagnant and online sales contracting. Despite seasonal sales and promotional offers, consumer demand for retail goods has taken a nosedive in recent months.’ He added that ‘the timing of this drop in demand could not be worse for the sector as it approaches peak trading season. The main question is what’s causing the decline in shoppers? If households are bracing themselves for Brexit and feeling unsettled by political and economic confusion, then demand could bounce back quickly.’
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (Ipsos Retail Performance), presents relevant data on footfall in non-food stores, and includes expert commentary on potential reasons for the decline. However, it could be improved by providing more context or background information about the retail industry and Brexit’s impact.
Noise Level: 4
Noise Justification: The article provides relevant information about footfall decline in non-food stores and offers some analysis from an expert on potential causes of the trend. However, it lacks a comprehensive exploration of the consequences or solutions for the issue.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses a decline in footfall in non-food stores, which can impact the retail sector’s financial performance and potentially affect related companies’ stocks and sales. It also mentions consumer demand being affected by Brexit uncertainty, which can influence market trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
www.retailsector.co.uk