Retailers fear the economic uncertainty over a tariff war could mean Brits lose their appetite for shopping as they continue to battle rising inflation and fewer jobs.
The British Retail Consortium (BRC) reported a 5.4% drop in shopping visits in March compared to the same month last year, extending a downturn after a brief rise in January.
Business and shopper confidence remains low with inflation and unemployment both on the rise.
The BRC warned the impact of US tariffs could drive confidence even lower with consequences for people’s willingness to spend.
“Global uncertainties resulting from tariffs and a potential economic slowdown could reduce the appetite for shopping trips in the coming months,” said Helen Dickinson, the trade body’s CEO.
“The government must find ways to boost consumer confidence and ensure retailers can invest in jobs and stores.”
Footfall in retail parks was down just 1.2% in March, said the BRC, holding up better than other locations as the expanding offer of hospitality and leisure outlets attracted new shoppers.
Out-of-town shopping centres were the worst hit, falling by 5.8%, while high streets suffered a 4% drop.
A later Easter this year was also a contributor to the downturn, said Andy Sumpter at Sensormatic which collected the data, meaning retailers will now be hoping that strong Easter trading can balance out a slow start to spring.
A separate survey by Deloitte this week found 47% of Brits had only spent on essentials in the last three months, the highest level since Deloitte began tracking it in 2011.
Businesses have been hit with higher National Insurance payments and a rise in the minimum wage this month, while households face a whole suite of price rises including energy and water.
“Amid high levels of global uncertainty, a more cautious UK consumer is likely to constrain the ability of businesses to pass on higher wages and other costs to customers,” said Ian Stewart, Deloitte’s chief economist.
“A revival in consumer spending will be dependent on the jobs market holding up and inflation pressures remaining contained,” he said.
Britain’s jobs market weakened again in March with the number of people looking for work rising by the most in over four years, according to a survey by KPMG and the Recruitment and Employment Confederation (REC). Permanent jobs have now declined in every month for the past two-and-a-half years, it noted.
“Recent global events have put pressure on any growth prospects in the UK, so it is unlikely that we will see an improvement in the data in the near term,” said Jon Holt, a senior partner at KPMG.
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