The UK retail industry is facing a major hurdle as over half a million workers go on strike, resulting in a decline in footfall in city centre retail areas. The strikes have posed challenges for businesses that have been slowly recovering from the impact of the pandemic. The latest data from MRI Springboard shows a significant decrease in footfall during the strike, but there was a slight improvement when many strikers returned to work on Thursday.
The week-on-week footfall dropped by 11.1% until mid-day on Wednesday due to mass staff walkouts and protests. With transportation disruptions, it was unlikely that footfall would pick up in the afternoon. Compared to the previous Wednesday, city centres across the UK experienced a 9.6% dip in footfall. Diane Wehrle, Insights Director at MRI Springboard, emphasized the significance of this decline, especially after a week of reduced footfall caused by severe weather conditions. Last Wednesday, footfall had already decreased by 13.9% compared to the previous week.
Among different types of destinations, retail parks were impacted the most, with a footfall drop of 21.3% compared to the previous Wednesday. Wehrle noted that the decline in retail parks’ footfall on last Wednesday was only 7%, while high streets saw an 18.4% drop and shopping centres experienced an 11.3% decrease. The largest footfall decreases from the previous week were observed in Northern Ireland, North & Yorkshire, and Scotland. The year-on-year gap also widened, standing at -13.6% compared to -7.9% the previous Wednesday. Additionally, footfall in 2022 was 34.1% lower than in 2019, which was a larger difference than the 23.9% decrease observed the previous week.
Interestingly, on Thursday, footfall across all UK retail destinations up until 12pm actually increased by 14.3% compared to the previous week. However, central London saw a 4.8% decrease in weekly footfall. Many employees in the capital chose to work from home due to the rail strikes, which is evident from the 8.4% week-on-week drop indicated by MRI Springboard’s Central London ‘Back to the Office’ benchmark. Delays in the Tube network likely impacted footfall in London as well, as Underground workers returned following the strikes on Wednesday. Despite the rail strike affecting most of the UK, footfall rose compared to the previous week, with increases in all three key destination types: high streets (13.8% increase), shopping centres (13.6% increase), and retail parks (16.3% increase). However, these improvements come from a low base, as the previous Thursday saw a 7.8% drop in footfall across all UK destinations due to severe weather conditions. Although footfall rose on Thursday compared to the previous week, it still remains lower than the same week in 2022. Footfall in all UK retail destinations is 2.4% lower than in 2022, while high streets and Central London experienced drops of 7.4% and 11.2% respectively compared to 2022.
The transport strikes have undoubtedly had a significant impact on city centre retail footfall, presenting challenges for businesses as they strive to recover from the effects of the pandemic. It is uncertain how the situation will evolve and whether footfall will continue to rise or be affected by further disruptions. In order to navigate through these challenging times, retailers will need to closely monitor the situation and adapt their strategies accordingly.
Useful Links:
– The Future of Retail in the UK: How Retailers Can Survive and Thrive
– What Does the Future Hold for the High Street?
