Recent data from Springboard has revealed that Brexit and the rise of e-shopping are continuing to take a toll on physical retail stores in the UK. The statistics show a significant 3.2% decline in footfall compared to the previous year, indicating a full year of continuous decline. The East, South East, and East Midlands regions have been particularly hard hit, with drops of 5.6%, 4.8%, and 4.7% respectively.
This decline in footfall has been linked to the influence of Black Friday, which has driven more consumers to make their purchases online during this period. Experts predict that retail footfall may decrease by 4.2% this month, a larger decline when compared to the 3.5% fall observed in the same period last year. Furthermore, high street footfall has dropped by 3.8%, marking the fourth straight month of decline.
Not only has retail park footfall seen a notable decrease of 1.4%, but shopping center footfall has also experienced a decline of 3.8%. Diane Wehrle, Springboard’s Marketing and Insights Director, stressed that Black Friday does not necessarily benefit physical stores, as most spending remains in-store despite the rise of online shopping during this time.
The increase in online shopping is considered a significant factor contributing to the decrease in footfall, alongside the ongoing uncertainty surrounding Brexit. Wehrle highlighted that the upcoming parliamentary vote on Brexit could prompt consumers to make purchases on large-ticket items before potential inflationary pressures hit.
Following a 5.5% drop in footfall and a 0.5% decrease in like-for-like spending during Black Friday week, it is evident that the UK retail sector is facing challenges from both online competitors and Brexit-related uncertainties. Despite these tough market conditions, retailers and consumers are working together to navigate through these uncertainties as they approach the peak retail trading period.
For more information on how Brexit is impacting UK retail stores, visit BBC. To learn more about the rise of e-shopping and its effects on traditional retail establishments, check out this article from Retail Gazette.
