Retailers ‘spooked’ as shopper numbers fall
THE number of shoppers on the Welsh high street declined last month, according to research from the Welsh Retail Consortium.
In September, total footfall, including at retail parks, fell by 1.9% against growth in August of 0.3%. Footfall fell on the high street by 2.7%. Wales only showed positive growth in retail park footfall at 0.8%. While this was a significant change to the 1.6% growth seen in August, it was identical to last year’s growth rate.
Sara Jones, head of policy and external affairs at the Welsh Retail Consortium, said: “September saw an unwelcome fall in visitor numbers to Welsh shopping destinations, with high streets suffering the largest drop of 2.7%. The overall figure puts Wales behind the UK average and will be of concern as we enter the festive shopping period.
“What Welsh retailers need now is a signal of confidence and stability at a time when the cost of doing business is becoming a deterrent to investment. We urge the Welsh Government to reflect on these issues when it tables its detailed budget plans later this month, giving the Welsh retail industry the boost it needs at a time of ongoing certainty and cost pressures. Specifically, unless the Welsh Government takes action, next year’s rates bills could be significantly increased if the business rates multiplier rises in line with RPI [retail price index measure of inflation] as in previous years.”
Diane Wehrle, marketing and insights director at Springboard, which carried out the research, said: “The drop in Wales’ footfall in September of -1.9% drove the threemonth rolling average down to -0.8% from +0.4% in August; the worst three-month average this year.
“Retail sales rose in September due to inflation, but the accelerating decline in footfall is a strong indicator of consumers railing back spending. Much is often made about the impact of weather, but with similar weather conditions to September 2016, this cannot be put forward as a driver.
“Aggressive early-season sales indicate retailers are spooked, and they will be on edge with the sixweek countdown now on to the start of the festive shopping season.”
Ms Wehrle said the decline in footfall doesn’t just mean reduced spending on retail goods
She added: “Drops in footfall across all periods of the 24-hour day (-1.6% from 9am-5pm and -3.7% post-5pm in Wales) demonstrate that leisure and hospitality spending is also being curtailed.
“The fact that the drop in footfall during daytime hours was half that post-5pm suggests some resilience, but this was derived from stronger performance in retail parks than in high streets and shopping centres, where daytime footfall dropped by 2.% and 2.1% respectively.
“Retail parks in Wales continue to increase their appeal with a rise of 0.8%, which is the eighth consecutive month of footfall increase. The appeal of their accessibility and free parking, alongside an increasingly attractive proposition, comes to the fore when household budgets are squeezed through inflationary pressures and minimal wage rise.”