Easter boosts high street footfall but retailers hold their breath
Retail footfall jumped in March as Easter boosted shopping activity, but business leaders fear tax and employment costs could yet cause havoc.
Total footfall in the UK increased by 2.4 per cent last month, according to trade body the British Retail Consortium (BRC), offering a welcome boost for retailers after wet weather drove shoppers away from the street at the start of this year.
But the BRC said the Easter shopping boost – which came earlier than usual this year – underperformed retailers’ expectations and may not be enough to insulate firms from April tax rises, wage increases and inflation fears.
Shopping centres saw the biggest boost in footfall, up to 2.6 per cent in February, followed by retail parks (2.5 per cent increase) and high streets (two per cent).
Manchester saw the biggest increase in shopping activity – where total footfall soared by more than nine per cent – while footfall in London rose slightly more than the national average, at a rate of 3.3 per cent.
Easter footfall worse than hoped
Though rising footfall was welcome – coming after 0.6 and 4.5 per cent drops in January and February – the BRC said this failed to meet the shopping boom hoped for by some retailers.
Helen Dickinson, the trade body’s chief executive, said: “With Easter and the school holidays falling earlier this year, retailers were expecting a stronger boost to footfall than March delivered.
“Warmer weather might help sustain footfall in the months ahead, but without an Easter uplift in April, momentum is far from guaranteed.”
Andy Sumpter, retail consultant at Sensormatic, which produced the BRC’s data, said March would have seen a dip in footfall if not for the Easter boost because of a worrying consumer backdrop.
He said: “Ongoing pressures continue to shape consumer behaviour. Declining confidence, geopolitical uncertainty and rising living costs – especially fuel – are still encouraging caution and fewer discretionary trips.
“March’s return to growth is a step in the right direction, but the real test will be whether footfall can hold once the Easter boost passes and tougher comparisons return.”
Ceasefire brings little comfort to retailers
President Trump’s announcement of a two-week ceasefire – which has since been plunged into doubt – was met with cautious optimism by retailers.
The BRC said the reopening of the Strait of Hormuz – if it occurs – could see global energy prices return to near-normal levels before most companies are due to renew their energy contracts.
But retail and hospitality leaders warned British businesses are still facing multiple pressures, in the shape of growing employment costs and April hikes to business rates.
Dickinson said: “[The] government can play its part supporting households by easing pressures created by domestic policy costs.
“Cutting these costs would free up retailers to invest more in value, experience and their in-store offer – the things that help footfall and create more vibrant local economies.”