Retail Sector Struggles as Foot Traffic Remains Below Pre-Pandemic Levels

  • UK footfall rose by 19% in June compared to May, but was still down 62.6% year-on-year
  • High street footfall decline improved from 74.5% to 58.4% after reopening of retailers in England and Ireland
  • Retail parks saw a smaller decline of 33.8% year-on-year due to wider spaces and more supermarkets
  • Shopping centres had the highest decline at 68.3%, improving to 59.6% after reopening
  • BRC CEO Helen Dickinson calls UK recovery ‘sluggish’ compared to Europe, urges government action if needed
  • Andy Sumpter of ShopperTrak says it’s too early to tell if pub and restaurant reopening will boost retail footfall

Footfall across the UK increased by 19% in June compared to May, but still decreased by 62.6% year-on-year, according to the British Retail Consortium (BRC). In the first two weeks of June, footfall decline averaged at 77.1%, which improved to 53.3% in the remaining three weeks after retailers were allowed to reopen in England and Ireland. High street footfall was down by 64.5% year-on-year, but the average decline reduced from 74.5% to 58.4% during the final three weeks of the month. Footfall in retail parks declined by only 33.8% year-on-year, with an average decline of 45.1% at the start of June that eased to 26.3% in the last three weeks. The BRC attributes this improvement to the wider spaces and higher proportion of supermarkets in retail parks, which reopened earlier than other retailers. Shopping centres experienced the highest decline of 68.3%, improving to 59.6% after reopening. Helen Dickinson OBE, CEO of BRC, stated that footfall levels are still below pre-coronavirus numbers but have softened since non-essential retail stores opened on June 15th. She also urged the government to take further action if needed to boost demand. Andy Sumpter, a retail consultant at ShopperTrak, mentioned that the recovery has been slow and it’s uncertain whether the reopening of pubs and restaurants will significantly increase retail footfall.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the changes in footfall across different types of retail locations in the UK during June, citing data from the BRC and including quotes from experts in the field. It presents a clear picture of the situation without any significant issues related to digressions, misleading information, or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about changes in footfall across different types of shopping locations in the UK during June, with comparisons to previous months and years. It includes quotes from experts that add context and analysis. However, it could benefit from more detailed data or insights into why the recovery has been slower than other European countries.
Financial Relevance: Yes
Financial Markets Impacted: The article mentions the impact on retailers and potential actions by the government, such as widening the VAT cut to include retail goods.
Financial Rating Justification: The article discusses footfall in UK retail locations and its improvement after reopening of non-essential stores, as well as the possible future impact of the reopening of hospitality on retailers. It also mentions potential government interventions like widening the VAT cut to boost demand.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk