Consumer caution ahead of Budget drives drop in footfall – BRC

Low consumer confidence ahead of a potential tax-rising Budget kept many shoppers away from retail locations in September, according to latest figures.

Tube strikes in London, heavy rainfall in the first half of September and Storm Amy towards the end of the month exacerbated the decline, the British Retail Consortium (BRC) said.

Total UK footfall was down by 1.8% in September on a year ago, significantly more than the 0.4% decline registered in August, BRC-Sensormatic data shows.

High street footfall decreased by 2.5% year on year in September while visits to retail parks and shopping centres were down 0.8% and 2% respectively.

Footfall fell year on year across all nations again, down 0.5% in Northern Ireland, 1.8% in England, 2.3% in Scotland and the largest decrease of 2.5% in Wales.

BRC chief executive Helen Dickinson said: “Retailers’ ability to invest in local communities and high streets has been hampered by last year’s budget, which added £5 billion in employment costs to the industry, in addition to a new packaging tax.

“For retailers to invest in shopping destinations that will entice shoppers back, the Government-imposed cost burdens holding back that investment must be lifted.

“The upcoming Budget is the moment for the Chancellor to do just that, deliver the Labour manifesto commitment of a meaningful reduction in business rates for the industry and ensure no shop pays more in the process.”

Andy Sumpter, from Sensormatic, said: “The month began with a modest uplift, driven by back-to-school shopping, but momentum was quickly disrupted.

“London’s Tube strikes mid-month and Storm Amy at the end brought widespread disruption, impacting shopper activity nationwide.

“These events compounded an already cautious consumer mood, with many still navigating cost pressures and economic uncertainty.

“Retailers will now be hoping that September’s slowdown was less a sign of retreat and more a pause for thought.”