UK retail footfall hit by record sunshine in May - BRC

(Sharecast News) - UK retail footfall fell in May, albeit less than in April, as the heatwave in the final week of the month kept shoppers away, according to data released on Friday by the British Retail Consortium. The BRC-Sensormatic footfall monitor showed that total footfall fell 2.6% year-on-year last month, an improvement on April's 10.7% slump.

Footfall on the high street declined by 1.5% in May, having fallen 9.2% the month before, while retail parks saw a 0.5% dip following a 9% decline in April. Footfall at shopping centres was down 2.4%, an improvement on April's 10.1% drop.

Footfall rose 0.4% in Scotland, but fell 1% in Northern Ireland, 3% in England and 5% in Wales.

BRC chief executive Helen Dickinson said: "While total UK footfall remained down on last year, it was a significant improvement on April's double-digit drop. While the warmer weather initially encouraged more people to the shops, the record-breaking temperatures at the end of the month resulted in a sharp decline in footfall, particularly at shopping centres and retail parks. Only high streets bucked the trend, as those who were out and about took the opportunity to pop into their local stores.

"Households remain anxious about the long-term impact of the Iran conflict and inflation and expect prices to rise over the year. By tackling the inflationary pressures on the horizon, Government can help rebuild consumer confidence, ultimately supporting footfall. The first priority must be to address non-commodity charges which are pushing up energy costs to an unsustainable level. The window for Government to act is narrowing, and any delay will only harm retailers and their customers."

Danni Hewson, head of financial analysis at AJ Bell, said: "It seems people were more inclined to sun themselves in the park or head to their nearest beer garden than take to shopping centres and retail parks during May's record-breaking temperatures.

"The BRC-Sensormatic Footfall Monitor reveals that an initial warm weather boost dissipated rapidly through the course of the month, except in Scotland where temperatures were a little milder.

"The sun may have shone, but UK retailers are under a real cloud thanks to the knock to consumer confidence delivered by the Iran conflict and resulting energy price shock.

"Households are keeping a tight lid on spending as they eye the threat from renewed inflationary pressures and higher borrowing costs, and this is putting real pressure on Britain's beleaguered shopkeepers."