According to Springboard’s footfall overview for the period spanning from 2 to 29 May, there has been a gradual return to spending among UK consumers, although not as rapid as initially anticipated. The demand for hospitality, in particular, remained subdued last month. However, there has been an increase in footfall in cities, particularly in Central London, as people begin to frequent larger destinations for work or leisure activities.
While footfall has strengthened since the reopening of non-essential retail in April, the gains following the reopening of indoor hospitality in May were described as lackluster. The hope was that the reopening of cafes and bars would attract more customers to retail locations. However, footfall in May was still 27.5% lower than in 2019, prior to the pandemic, although this decline was less severe than the 32.7% decrease observed in April.
The report attributes this decline in footfall not only to a lack of demand but also to unfavorable weather conditions and capacity limitations in dining establishments. The gap in footfall between 2019 and 2021 widened throughout the month, from a 25.3% decline in the first week of May to a 26.8% decline by the last week. Specifically, footfall decreased by 36.3% in high streets, 30.3% in shopping centers, and 5.7% in retail parks compared to 2019.
However, there was a noticeable uptick in footfall observed in larger destinations in May, both in Central London and regional cities across the UK. Footfall in Central London increased by 17.2% compared to the previous month, while regional cities saw a 20.4% increase. In comparison, footfall on UK high streets only experienced a modest 7.1% increase from April. Unfortunately, this shift towards larger destinations appears to have had a negative impact on smaller high streets, with a marginal 0.7% decline in footfall from April in market towns and high streets in Outer London.
Despite these increases, footfall in Central London is still 58% lower than in 2019, while regional cities outside of the capital continue to face a 33.7% decline. In contrast, high streets in Outer London and market towns have experienced declines of 23% and 28.6% respectively. Springboard emphasizes that these figures must be considered within the context of the overall decrease in footfall resulting from the ongoing pandemic.
The report also underscores that the further shift of footfall back into London and other regional cities will depend on whether the government’s roadmap for easing restrictions proceeds as planned or faces additional delays beyond the anticipated date of 21 June.
Useful links:
– BBC: UK retailers report strong sales growth in May
– Financial Times: UK retail sales rebound dampened by hospitality woes
