According to Springboard, although the Queen’s Platinum Jubilee weekend provided a welcome boost to footfall in the UK in June, the outlook for the remainder of the year seems to be weakening. Factors such as the cost of living crisis and the growing trend of permanent remote working are expected to keep footfall below the levels seen in 2019 for the foreseeable future.
Retail footfall in June was 12.3% lower than in 2019, which showed an improvement compared to May’s figure of -13.7%. This increase can be attributed to the surge in retail activity during the Jubilee celebrations in the first week of the month. However, the gap from 2019 widened in the subsequent four weeks of June, with retail footfall reaching -16% across all destinations and high streets experiencing a decline of -19.5% in the final week.
The overall decline in high street activity was 14.9% compared to 2019, while shopping centers saw a drop of 16.5% and retail parks decreased by 2.1%. Inconsistent sales in stores from week to week indicate that consumers are starting to rein in their spending habits. Springboard suggests that the cost of living crisis and the shift towards hybrid working arrangements are beginning to impact consumer behavior, resulting in limited shopper activity.
Remote working has particularly affected footfall in larger towns and cities, with Central London experiencing a significant 21% decline compared to 2019. Springboard’s Retail Consumer Survey revealed that approximately half of consumers now work from home at least part of the week. Coupled with the squeeze on household budgets, footfall is expected to remain 10-15% below 2019 levels in the second half of 2022.
Diane Wehrle, Marketing & Insights Director for Springboard, also highlighted that store sales have been supported by spending from middle-income families who were able to save during the pandemic. However, this spending is expected to slow down as people anticipate increased energy bills and the approaching holiday season.
Overall, while the Queen’s Platinum Jubilee celebrations provided a temporary uplift to UK footfall, the long-term outlook suggests a continued weakening due to factors such as the cost of living crisis and the shift towards remote working. It is expected that footfall will remain below 2019 levels for the rest of the year.
Useful links:
1. Springboard
2. Retail Gazette – Record £3.8bn sales dip weighs down H2 prospects
