The number of people venturing out to retail stores in the UK experienced a decline in July, marking the first decrease for the month in 14 years. Adverse weather conditions, including heavy rainfall, played a significant role in this downturn, along with other factors such as rising living costs and rail disruptions, according to retail analysis firm Springboard.
Overall footfall saw a decrease of 0.3% during the month, with High Streets being particularly affected. However, shopping centers and retail parks witnessed a boost in visitor numbers. Springboard cautioned that even if the weather were to improve, shoppers might continue to stay away.
Diane Wehrle, from Springboard, stated, “It is inevitable that consumers’ attention will now turn towards planning for Christmas spending, which may well dampen footfall further in the latter part of the summer.” She highlighted the preference of shoppers for covered environments such as shopping centers and retail parks due to their accessibility by car, leading to a decline of 4.6% in footfall on High Streets in coastal towns.
Wehrle also noted that the impact of interest rate hikes on consumers, combined with rain and a rail overtime ban, appeared to be reflected in July’s figures. The Bank of England has been steadily increasing interest rates to cool down the economy amidst notable rises in consumer costs. Mortgage rates have begun to affect individuals’ finances, placing significant pressure on everyone. As a result, the Bank is expected to raise interest rates for the 14th time since December 2021 in an attempt to curb spending and slow down price increases.
