The British Retail Consortium (BRC) emphasizes the urgent need for political intervention to counteract a significant decline in retail footfall.
- Foot traffic in UK retailers dropped by 3.6% in May, with shopping centers seeing the largest decrease of 4.5%.
- The BRC urges changes in the business rates system and planning laws to foster economic growth and revive high street shopping.
- All UK regions experienced a decline in retail visits, with Scotland and Wales facing the highest reductions.
- There is a growing call for policies that enable retailers to invest in upgrading shopping environments to attract customers.
In May, UK retail footfall experienced a noticeable decrease of 3.6% year-on-year, as outlined by the BRC-Sensormatic IQ figures. This downturn was most pronounced in shopping centers, which saw a 4.5% reduction, while high streets and retail parks also reported declines in foot traffic by 2.7% and 2.3% respectively. These figures indicate a concerning trend for the retail industry, which relies heavily on physical customer visits.
Scotland and Wales bore the brunt of these reductions, with footfall falling by 5.4% and 5% respectively. England and Northern Ireland also saw declines, suggesting a nationwide issue affecting retail outlets. The BRC attributes this drop in part to the inability of bank holidays and favorable weather to sufficiently draw customers to physical stores.
Helen Dickinson, CEO of the BRC, highlighted the urgent need for political action amidst these challenges, especially with an impending election. She pointed to ineffective business rates and outdated planning laws as significant barriers to retail growth. According to Dickinson, “A broken business rates system and outdated planning laws are holding back the industry… This will boost economic growth, lift consumer spirits, and help drive more shoppers back to our high streets and other retail destinations.”
The call for reform is not just about immediate economic benefits but also about long-term strategic investment in retail infrastructure. As the sector faces transformative shifts with online shopping gaining ground, there is an essential need to rethink how physical shopping spaces can be revitalized to offer value and experiences that online platforms cannot provide.
Addressing these issues through targeted reforms could rejuvenate the UK’s retail landscape and invigorate consumer interest.
