Footfall across retail locations has fallen for the sixth consecutive month, showing the vital need for the Chancellor to support shops in the 26 November budget, according to the BRC.
BRC CEO Helen Dickinson said the footfall numbers showed Rachel Reeves must exclude shops from a planned business rates surtax on the largest properties, while also delivering meaningful rates reduction for the retail industry as a whole.
The latest BRC-Sensormatic data showed total UK retail footfall decreased fell by 0.7% year on year in the four weeks to 5 October, making for the sixth consecutive month of decline.
It fell by 0.5% in retail parks and 0.9% in shopping centres. Only high streets gained a modest increase, of 0.6%.
Footfall in Wales increased by 0.6%, while all other nations experienced a decline – Scotland was down by 0.1%, Northern Ireland by 0.2%, and England by 0.9%.
“While overall footfall fell for the sixth consecutive month, there was some good news on high streets, which saw positive shopper traffic after a disappointing September,” said Dickinson.
“With consumer confidence remaining weak ahead of the possibility of a tax-raising budget, many households have stayed away from shopping centres and retail parks. However, a Friday Halloween brought some welcome relief, delivering a late-month boost for retailers.
“Many retail locations have struggled to attract as many customers to their stores in recent years, buffeted by the high cost of living and poor consumer sentiment.
“It is vital the Chancellor uses the budget to support shops – including large anchor stores – which help drive shopper traffic to high streets and surrounding businesses. Now is the moment for government to deliver on their manifesto’s business rates commitment, exclude retail from the new business rates surtax, and ensure a meaningful rates reduction for the industry. This will help to boost investment in fresh and exciting shopping destinations, better in-store experiences and encourage shoppers to visit more often.”
Retail chiefs have expressed confidence that Reeves has listened to their repeated calls for exemption of shops from the planned business rates surtax on large properties across all sectors.
Commenting this week as M&S announced its half-year results, the retailer’s CEO Stuart Machin said: “I think thankfully that seems to be a point that has been discussed and received, so I’m hopeful.”
Lidl GB CEO Ryan McDonnell expressed similar sentiment last month, saying: “We’ve been very communicative with government, not just ourselves individually, but through the BRC.
“We think those discussions have been quite productive. I’m quite hopeful the government will see sense.”
Sensormatic retail consultant Andy Sumpter said of the latest footfall data: “Halloween gave retailers a brief treat, with footfall rising on the day, but overall figures suggest shoppers remain cautious.
“In response, some retailers have brought forward discounting to tempt early spend, hoping to capture demand ahead of Black Friday and the festive peak. The autumn statement also looms, with hopes for support to ease cost pressures.
“Inflation, though cooling, continues to weigh on sentiment, and price-conscious consumers are increasingly shopping around for value. Shoppers appear to be spooked by ongoing economic uncertainty, delaying discretionary purchases and focusing on essentials.
“October’s slight improvement may hint at early seasonal activity, but retailers will be watching closely, hoping to see momentum build in November.”
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