In September, footfall growth in the UK continued to slow down, with high streets experiencing the greatest impact. A report by Springboard revealed that customer activity in September was declining, particularly on high streets, indicating a slower recovery in footfall compared to the same period in 2021 when all Covid restrictions had been lifted.
Between August 28 and October 1, footfall on high streets was 9.5% higher than in 2021, surpassing the 7.7% increase in shopping centers. However, in August, high streets had seen a 13.9% growth in footfall compared to the previous year, while footfall in shopping centers slightly improved with a 7.5% increase. Retail parks remained stable, with footfall in September only 0.3% higher than in 2021.
When compared to pre-pandemic levels in 2019, the gap narrowed in September to -12.6% from -13.2% in August. High streets were still struggling, with footfall 14.4% below the levels of three years ago, while shopping centers were 16.7% lower and retail parks were 4.3% lower.
Although the situation is not ideal, footfall is not completely stagnant. However, high streets face significant challenges. In addition to inflation, the shift to hybrid working is also impacting the recovery of footfall. With approximately half of all employees still working from home at least part of the week, activity on high streets remains significantly lower than in 2019, particularly on weekdays. In September, footfall on UK high streets during weekdays was 17.4% below the 2019 levels, compared to a 6.9% decrease during weekends.
While the government’s energy price guarantee has provided some relief for households, the ongoing inflation rate and recent increase in interest rates are expected to result in more cautious consumer behavior from October onwards. As a result, footfall and retail sales are likely to be immediately affected, with fewer visits to larger centers that involve higher travel costs. This trend has been observed in previous recessions, as shoppers chose to support local businesses.
On a positive note, Springboard believes that smaller, local high streets may continue to strengthen as they showed resilience during the pandemic. These areas experienced a surge in support from consumers and could see sustained growth in the future.
Here are two useful links relevant to the article:
1. Springboard: Visit Springboard’s website for more information on footfall trends and reports.
2. UK Government: Explore the UK government’s website for updates on economic policies and measures.
