Retail footfall dips in May despite higher consumer confidence
Retail footfall dropped in May amid a wider slowdown in consumer spending despite higher consumer confidence, according to new data.
Total UK footfall fell by 1.7 per cent in May year on year, down from a 7.2 per cent rise in April, according to new figures from the British Retail Consortium (BRC).
Footfall at shopping centres and on the high street fell by 2.5 per cent, while retail park footfall fell by just 0.2 per cent.
More Brits in the south – particularly London and Bristol – stayed away from stores, with footfall down 3.2 per cent in London and four per cent in Bristol.
“Despite the warm and sunny weather—more typical of peak summer than late spring—footfall didn’t quite follow suit,” Andy Sumpter, consultant at Sensormatic, said.
UK retail sales increased just one per cent in May, the weakest monthly growth in the year to date.
Even online spending growth slowed – consumer card spending also grew one per cent year-on-year in May, significantly down from April’s 4.5 per cent growth and below the latest inflation rate of 3.5 per cent.
It’s possible that Brits spent ahead of time in April, when the double bank holidays – including Easter – fell during a historically sunny May.
Overall retail sales volumes has risen by 1.2 per cent in April, triple expectations of 0.4 per cent, while sales across all hospitality outlets were up 4.2 per cent.
Helen Dickinson, chief executive of the BRC, suggested that May’s slowdown was a hangover from higher bills in April, which “depressed consumer sentiment and the appetite to visit retail stores”.
However, Sumpter pointed to “signs of improvement” in consumer sentiment” as a reason for optimism.
Three measures of consumer confidence rose in May, with Brits boosted by easing geopolitical tensions and lower interest rates.
“Retailers will be looking to make hay while the sun shines—focusing on the right mix of experience, value, and convenience to convert seasonal footfall into sustained growth,” Sumpter said.