Shoppers avoid big buys as Brexit looms
WELSH shoppers are growing wary of spending as concerns over the effects of triggering Article 50 begin to affect consumer confidence, according to industry research.
While footfall figures in Wales grew the fastest of anywhere in the UK in February, there are signs of increasing uncertainty from Brexit – with shoppers keeping away from bigger buys.
Footfall in Wales grew by 1.7% in February on last year, the fastest growth of all the nations or regions – according to the Welsh Retail Consortium and Springboards Footfall & Vacancies Monitor.
That is above the threemonth average of 0.2% and the 12-month average of 0.3%.
Wales was the only part of the UK in February to see footfall increase in the last year.
While footfall in leisure and restaurants improved from January and was the highest in the UK, Welsh shoppers shunned the retail parks that are home to some of the pricier purchases.
Retail parks experienced a -1.6% drop in their footfall, the biggest since 2013, as spending on furniture and household items fell.
Diane Wehrle, marketing and insights director at Springboard, said: “Footfall in February was a tale of two halves.
“Though footfall in Wales improved on the January result, this is not reflective of the stabilisation of consumer behaviour.
“Increasing uncertainty arising from the imminent triggering of Article 50 has certainly started to have an impact on purchasing behaviour, the types of destinations shoppers are visiting and how they spend their money.
“High streets are clearly benefiting as the destination of choice for dining and leisure, while shopping centres continue to underperform as they struggle with a weak entertainment and leisure offer, coupled with increasing caution among consumers around retail spend.
“Retail parks experienced their biggest drop in footfall (-1.6%) since November 2013 as spend on furniture and household items – traditionally a significant footfall driver for retail parks – weakened slightly in February. ”
Sara Jones, head of policy and external affairs at the Welsh Retail Consortium, said businesses faced a difficult time.
She said: “With the highest increase in footfall across all nations and regions of the UK last month, one might suggest we are seeing a revitalisation of the Welsh high street.
“The figures from February will be a welcome sign of a rise in consumer confidence across Wales, supported by retailers’ pricing and promotional efforts.
“The challenge for our town centres and shopping destinations will be turning this into a more sustained uptick in the months ahead, particularly as the popularity of online shopping and click and collect services continues to soar, providing ever greater choice and convenience for customers.”
Ms Jones also said: “The boost in shopper footfall comes at a time when the retail industry is grappling with a relentless rise in the burden of government-inspired cost pressures to do with employment, taxes and regulation.
“The revaluation of business rates, which will take effect in April, has caused huge concern for some retailers and we continue to press for a commitment for more fundamental reform of the rates system by the Welsh Government.
“Without a supportive business environment, the longterm picture will be one of rising vacancy rates and less investment in communities.”