Retail footfall down for twelfth consecutive month – but spending surge on the horizon

Figures for retail footfall in the UK fell for a twelfth consecutive month as shoppers opted to spend on holidays and leisure rather than consumer goods.

Total footfall decreased by 3.3 per cent in July, down from a fall of 2.3 per cent in June, according to the latest figures from the British Retail Consortium.

The fall in footfall was attributed to summer spending on holidays rather than retail, plus the effects of the general election and the lingering cost-of-living crisis.

Both retail park footfall and shopping centre footfall fell in July, by 0.8 per cent and 3.9 per cent respectively, but total high street footfall increased in July, by 2.7 per cent, a huge jump from a 3.1 per cent fall in June.

“As summer got into full swing, many people have chosen to increase their spending on holidays and leisure activities rather than shopping,” Helen Dickinson, chief executive of the British Retail Consortium, said.

“Election week also saw particularly weak footfall, as political electioneering peaked, creating uncertainty for many consumers,” she added.

The latest consumer confidence surveys suggest that Britain is tentatively gearing up to spend. Gfk found a seven-point increase in its major purchase index, which asks whether consumers consider it a good time to make a major purchase.

“July’s consumer confidence poll suggests a note of caution as people wait to see exactly how
the UK’s new government will affect the wider economy and their personal finances,” Joe Staton, a director at GfK, said.