Rain drives shoppers off high streets in blow to retailers
This year’s record wet weather has kept Brits indoors and away from the high street, in a blow to retailers as they face growing costs.
Retail footfall fell by 4.5 per cent in February year on year, down from January’s 0.6 per cent decrease, according to the British Retail Consortium (BRC).
UK retailers are sounding the alarm over mounting employment costs as minimum wage hikes, national insurance contributions and workers’ rights reforms combine to force bosses to consider slashing jobs.
Helen Dickinson, the BRC’s chief executive, said: “While the Government can’t control the weather, it can help turn footfall around by incentivising local investment.”
Footfall at shopping centres fell the most in February, down 5.5 per cent, as visits to high streets were down 5.4 per cent.
Retail parks were less badly affected by the rain but still saw a decline in footfall, marking a decrease of 3.1 per cent last month.
Clothing and footwear were worst affected by the February rain, the BRC said.
The government recently announced a £150m cash injection to renew the country’s high streets, and the BRC has called on Labour to pair this with reform of the tax policies – such as business rates – which it says are damaging retailers.
Dickinson said: “The Strategy needs to recognise that raising so much tax revenue through property taxes is no longer sustainable.
“The industry remains ready to work with Government on a solution that brings a sunnier outlook for both businesses and consumers.”
Brits in the capital made the biggest cuts to their shopping trips in February, with total retail footfall in London down 6.3 per cent in February, worse than any other region that month and the capital’s 1.1 per cent fall in January.
Every city measured by the BRC saw footfall drop last month but Bristol saw the softest impact, marking a drop of only 1.6 per cent.
Monsoon boss in hiring costs warning
Responding to February’s drop in footfall, the boss of retail giants Monsoon and Accessorize called on the government to ensure its workers’ rights reforms do not prevent retailers from hiring workers.
The retail industry has shed 250,000 jobs in the last five years and the cost of hiring an entry-level worker has risen by ten per cent in the last year, Nick Stowe said.
Writing in Morning Wire on Friday, he said: “The Act risks applying rigid contract requirements that would make it difficult to flex working hours to meet the seasonal demand inherent in retail.
“If we get this right, we will have a once in a generation opportunity to strengthen worker rights whilst enabling retailers to continue investing, regenerating communities and creating opportunity across the country.”
A government spokesperson said: “We know businesses are facing a difficult time, and that’s why we have introduced a Small Business Plan and launched a £4.3bn business rates support package.
“We want the Employment Rights Act to work for employers and workers alike and are consulting with businesses, providing practical guidance and phasing in changes to give them time to prepare.”