Shops’ recovery stalls

Shopping centres hit by continuing Covid curbs as footfall down a third

THE number of shoppers visiting retail centres was nearly a third lower last month than in June 2019 as footfall recovery ‘stalled’.

Figures show a 29.5 per cent drop in June this year compared to the same month two years ago.

The UK average decline was 27.6 per cent, with a 4.8 per cent decrease from May 2021.

Shopping centre footfall dropped 34.1 per cent in June in Scotland compared to 2019, according to the SRC-Sensormatic IQ data.

Ewan MacDonald-Russell, head of policy and external affairs at the Scottish Retail Consortium, said: ‘The recovery in shopper footfall stalled in June in the second full month since shops fully reopened, with total footfall falling back by nearly 5 per cent compared to the previous month.

‘This was very different from elsewhere in the UK, potentially driven by the pause in relaxing Covid restrictions north of the Border.

‘That reverse meant visits to retail destinations were nearly a third lower than the comparable period in 2019. Shopping centres continue to struggle to attract shoppers, with footfall more than a third below the 2019 figure.

‘These figures illustrate just how far the retail industry is from recovering from the Covid crisis.’

Mr MacDonald-Russell added that while stores can trade, the restrictions on hospitality and office working continue to have an impact on visits to the high street. He said: ‘Operating stores remains challenging with capacity limits.

‘There is a growing need for policy makers to consider how best to reignite consumer confidence.’

The figures also show that footfall in Glasgow decreased last month by 30.3 per cent compared to two years ago, with a 7.2 per cent decline from May 2021.

Analysts SRC-Sensormatic IQ said that to make meaningful comparisons to changes in footfall, all 2021 figures were compared with 2019 because much of the retail sector bounced between being open and closed throughout 2020.

A Scottish Government spokesman said: ‘We recognise that what was already a challenging time for retail and our high streets has been exacerbated by Covid-19.

‘We continue to do all we can to safeguard jobs and provide support to the retail sector in Scotland as we manage the ongoing impact of the pandemic.

‘We have put in place a package of support worth over £3.6billion to limit the impact of the pandemic on businesses, including extending 100 per cent Retail, Hospitality, Leisure and Aviation Relief throughout 2021-22, saving rate-payers an estimated £719million.

‘We have also recently provided funding to support the rollout of the new Scotland Loves Local gift card and marketing campaign to bolster our local economies’ recovery as part of the £10million Scotland Loves Local programme.’

He added that the Retail Strategy Steering Group of industry representatives is looking at how the sector may have to adapt.