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UK retail footfall slips on budget uncertainty in September

ALN

UK retail footfall decreased on-year at a faster rate in September than in August, data from BRC-Sensormatic showed Friday.

Total UK retail footfall was 1.8% lower than a year ago, with the pace of decline accelerating from 0.4% the previous month.

Helen Dickinson, chief executive of the British Retail Consortium, noted this was the first time since June that traffic decreased in all three retail divisions.

High Street footfall contracted by 2.5%, swinging from 1.1% growth in August. Shopping Centres saw a steep 2.0% drop on-year, after registering no change the month prior. However, the decrease in retail park footfall slowed to a rate of 0.8% in September, after declining 1.1% in August.

‘Low consumer confidence ahead of a potential tax-rising budget kept many shoppers away from retail locations in September, ’ said BRC’s Dickinson.

‘Retailers ability to invest in local communities and high streets has been hampered by last year’s budget, which added £5 billion in employment costs to the industry, in addition to a new packaging tax.’

Dickinson added that the upcoming budget, due to be announced next month, is the government’s opportunity to ease ‘cost burdens’ and enable retailers ‘to invest in shopping destinations that will entice shoppers back.’

Andy Sumpter, Sensormatic’s retail consultant for Europe, the Middle East and Africa, noted: ‘The month began with a modest uplift, driven by back-to-school shopping, but momentum was quickly disrupted. London’s Tube strikes mid-month and Storm Amy at the end brought widespread disruption, impacting shopper activity nationwide. These events compounded an already cautious consumer mood, with many still navigating cost pressures and economic uncertainty.’

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