UK retail sales fall in August despite…

In retail parks alone it was up 2.6% year-on-year, swinging from a 0.8% decline seen in July. Street traffic fell to 0.3% in August from 2.7% in July, while in shopping centers footfall fell 1.8% year-on-year in August, following a 3.9% drop in July.

“As violent disorder broke out across the country at the start of the month, footfall was badly affected as many people stayed away from shopping destinations,” says BRC chief executive Helen Dickinson.

“Retail parks saw an increase in traffic levels in the week following the riots, with some continuing to avoid high streets and shopping centres. Stock picked up across all destinations towards the end of the month as warmer weather and summer sales prompted shoppers to browse their favorite stores.”

Sensormatic analyst Andy Sumpter said a bank holiday, weaker inflation and warmer weather encouraged shoppers to venture into UK retail locations.

“With all types of destinations improving in terms of visitor numbers in July, retail parks, which could attract shopper traffic from city centers during riot unrest, had a standout month,” Sumpter added.

“Retailers will be hoping that the resilience seen in August, with traffic tantalizingly close to returning to positive year-over-year performance, will lead to long-term growth in store traffic.”

Figures on Tuesday showed that UK shop prices in August slipped into deflation for the first time since 2021. The BRC said that in the first week of August UK shop prices fell by 0.3% from a year to another, below the three-month average without change. and compared to July annual inflation of 0.2%.

“Annual shop price growth remained at the slowest pace since October 2021,” the BRC noted on Tuesday.

By Eric Cunha, News Editor Alliance News