Footfall across UK retail destinations declined by -0.3% over the month from June to July 2023, versus a rise of +3.7% in the month from May to June 2023.
This is the first July since MRI Springboard started publishing its data in 2009 that footfall was lower than in June.
There was a month-on-month decrease in footfall in high streets of -1.7%, while in retail parks footfall was +0.7% higher than in June 2023 and +1.7% higher in shopping centres.
The rises in footfall in retail parks and shopping centres were more subdued than in July in previous years; since 2009 the average increase in footfall from June to July in retail parks has been +2.4% and +2.5% in shopping centres.
Footfall across UK retail destinations rose annually by +2.1% in July versus +4.2% in June. In high streets footfall was just +1.2% ahead of July 2022 versus an annual rise of +5.2% in June 2022. In retail parks the annual uplift from 2022 held steady at +1.8% for the second month, and in shopping centres it narrowed slightly to +4.1% from +4.4% in June.
The gap from the pre-pandemic footfall level widened to -12.1% in July from -8.6% in June; in high streets the gap widened to -15.5% from -10.3% in June, in shopping centres the gap widened marginally from -13.3% to -14.9% in June and in retail parks it widened to -1.6% from -0.04% in June.
Diane Wehrle, marketing and insights director, commented: “July appeared to demonstrate the harsh reality of the impact of interest rate rises on consumers, combined with rain and a rail overtime ban on several days in the month. This meant that footfall across UK retail destinations was -0.3% lower than June 2023, which is the first month-on-month decrease since March 2023, when consumers deferred shopping trips until Easter which was then followed by a rise of +7.2% from March to April.
“Perhaps more significantly, this is the first July since MRI Springboard started publishing its data in 2009 that footfall was lower than in June, despite rain impacting July in several previous years. Indeed, over the decade to 2019 the average month-on-month rise in footfall from June to July was +3.4%.”
She continued: “While we have the experience of footfall bouncing back from a negative position in March to a positive one in April, it is not anticipated that this will necessarily be replicated in August this year.
“The August bank holiday is a less significant public holiday than Easter which is what drove additional footfall in April, and the impact of the increase in interest rates is clearly now starting to be felt.
“With the fourth quarter of the year looming, and many holidays either paid for or taken, it is inevitable that consumers’ attention will now turn towards planning for Christmas spending, which may well dampen footfall further in the latter part of the summer.”
