Shops worry Jubilee boost will fade fast

THE “fragile” Jubilee fervour driving shoppers to the high street risks being upended by the cost of living crisis, industry chiefs have warned.

Visitor numbers to physical stores rose 0.6pc from April to May, according to the British Retail Consortium (BRC), giving shop owners hope of a permanent return to activity.

Platinum Jubilee events have sent partygoers rushing out for food, drink, costumes and decorations, helping to swell retail footfall for the third month in a row, according to BRC chief executive Helen Dickinson. She said: “The anticipation for the Jubilee celebrations offered an added boost to footfall, with the public hitting the shops to find the best decorations and festive food and drink for the long weekend.”

Despite footfall remaining 12.5pc lower than the same period in pre-pandemic 2019, the drop is not as pronounced as in Italy, Germany and France, where about a fifth of shoppers are yet to return.

Yet customers’ shrinking disposable incomes amid the cost of living crisis threatens pain for brick-and-mortar shops, just as retailers try to recover from the impact of lockdowns.

“Improvement to footfall remains fragile as the cost of living bites,” said Ms Dickinson. “With UK discretionary incomes falling, Government’s financial support to tackle surging energy costs may only provide temporary respite for households.”

The worst pain has been felt by shopping centres with visitors to retail parks having fallen by a quarter since the pandemic. Footfall in England’s town centres has bounced back the most, followed by Northern Ireland, Wales and Scotland, where visitors are still 16.4pc down.

Lockdowns led to a wave of insolvencies among retail brands as customers turned to home deliveries. Many have continued to embrace online shopping.