Welsh retail footfall is still well below pre-pandemic levels as rising inflation and energy bills continues to knock consumer confidence, according to new research from the Welsh Retail Consortium.
Figures from last month show that footfall decreased by 15.8%, compared to a year-on-three-year (Yo3Y) comparison of July 2019.
Of the nations and regions of the UK, the decline was only greater in London and Scotland both recording a decrease in footfall of minus 16.5%.
The shallowest decline on three years pre-pandemic was in north west England at minus 9.6%. The UK average decline was 14.2% (Yo3Y) and for England 14%.
GROWTH RANK NATION AND REGION % GROWTH Yo3Y
1 North West England -9.6%
2 West Midlands -12.1%
3 Northern Ireland -12.3%
4 South West England -13.6%
5 Yorkshire and the Humber -13.8%
6 England -14.0%
7 South East England -14.2%
8 East of England -14.3%
9 North East England -14.6%
10 East Midlands -15.4%
11 Wales -15.8%
12 London -16.5%
13 Scotland -16.5%
The position in Wales in July was 3.1 percentage points worse than June and the worst figures recorded since March.
Shopping Centre footfall declined by 35.1% in July (Yo3Y) in Wales, worse than the decline of 28.9% in June.
Footfall in Cardiff decreased by 15.5% (Yo3Y), 0.4 percentage points better than June.
Of the UK cities, the decline in Cardiff was higher than London (minus 16.4%), Bristol (minus 16.6%), Nottingham and Birmingham (both at minus 17.6%), and Leeds (minus 22.4%).
GROWTH RANK CITY % GROWTH Yo3Y
1 Manchester -5.6%
2 Liverpool -11.5%
3 Belfast -12.8%
4 Edinburgh -13.5%
5 Glasgow -13.6%
6 Cardiff -15.5%
7 London -16.4%
8 Bristol -16.6%
9 Nottingham -17.6%
10 Birmingham -17.6%
11 Leeds -22.4%
Following the results, the Welsh Retail Consortium is calling for the Welsh and UK governments to recognise the huge challenge facing the retail sector and act in the UK and Welsh budgets to protect household incomes and help retailers.
Head of the WRC Sara Jones said: “As temperatures soared in July we saw an unwelcome dip in footfall to Welsh retail destinations, with 3% fewer shoppers compared to the previous month.
“Footfall across all locations fell to -15.8 percent compared to pre-pandemic trading – the worst figures since March. Welsh shopping centres were particularly affected in July with a whopping 6% fall in footfall, this is 35% lower than pre-pandemic and needs urgent attention by policy makers.”
Ms Jones added: “As the year progresses retailers will be rightly concerned with the lack of return to pre-pandemic shopping patterns. That is an intense worry for high street retailers who now face higher costs than three years ago but have fewer customers coming in the door.
“With consumer confidence badly shaken by rising inflation and the prospect of mountainous energy bills in the autumn both the UK and Welsh governments need to urgently recognise the scale of the challenge facing the industry. That should then lead into action in the UK and Welsh Budgets later this year to protect household incomes, especially for the least affluent, whilst helping retailers to weather the economic storm.”
Retail consultant EMEA for Sensormatic Solutions Andy Sumpter said: “July delivered a smorgasbord of summer disruption for retailers, as the ongoing rail strikes derailed footfall gains and the UK’s record-breaking heatwave saw shoppers shun the shops for several days as the temperatures soared.
“Add to this the ongoing cautiousness we’re seeing among the cost-of-living consumer, it made for a bumpy month for shopper traffic performance. And amidst the tailwinds of economic uncertainty, comes possible policy changes as the Tory leadership contest plays out; retailers will be listening closely to how the next Tory leader plans to help the High Street, whilst hoping shoppers vote with their feet in August.”
