UK retailers are eagerly anticipating the long-awaited “Freedom Day” on 19 July, which marks the full reopening of England. Data from Springboard reveals a mixed bag of trends in retail footfall, with both positive and negative indicators.
On a positive note, visits to retail destinations have been steadily increasing over the past five weeks, and June recorded the strongest result since the beginning of the pandemic. However, footfall growth slowed down after an initial surge in early June when the government announced the delay of Freedom Day.
The delay in reopening had a direct impact on consumer behavior, as it dampened the incentive to shop. Moreover, restrictions on overseas travel have decreased the demand for summer fashion, as consumers anticipate holidays abroad. While June saw an improvement in footfall compared to May, it still remains 22.2% below the levels seen before the pandemic hit in 2019.
High streets witnessed the largest increase in footfall during the five-week period, benefiting from the resumption of indoor hospitality services. In June, footfall on high streets rose by a third. However, footfall in high streets, shopping centers, and retail parks still lags significantly behind 2019 levels, with declines ranging from 4.1% to 29.1%.
The surge in footfall was primarily concentrated in the first week of June, which included both the early spring Bank Holiday and the half-term school break. Footfall across all destinations improved to a decline of 14.5% compared to 2019 levels during that week, a considerable improvement from the previous week’s decline of 26.8%.
In the South West, which has been a popular staycation destination this year, footfall was only 1.8% below 2019 levels in the first week of June. Diane Wehrle, Marketing & Insights Director for Springboard, emphasizes the significant opportunity for physical retail to attract consumers once restrictions are lifted on 19 July. The combination of increased freedoms and the summer holiday season is expected to incentivize consumers to visit brick-and-mortar stores.
Retailers are hopeful that the reopening on Freedom Day will inject much-needed life into footfall and sales. With the lifting of restrictions and the potential influx of consumers during the summer holiday period, there is a renewed sense of optimism for the recovery of the UK retail sector.
Useful links:
1. Government guidance on COVID-19 restrictions in the UK
2. British Retail Consortium (BRC)
