UK’s second coronavirus wave hits physical retailers hard

At the beginning of September, UK footfall rose to a post-coronavirus lockdown peak, buoyed by back to school shopping and the final week of the Eat Out To Help Out scheme.

By the end of the month, however, a tightening of coronavirus restrictions had torpedoed any hopes of a quick(ish) recovery. Year-on-year UK footfall decreased by 30.1% in September, with only a 4.7 percentage point improvement from August, according to research by the BRC and ShopperTrak.

Footfall on high streets declined by 36.9% YoY. They were the most negatively affected location in September, again falling below shopping centres (-36.1%) for the second time since April 2018. Retail parks saw a decrease of 6.9% YoY as they benefitted from wider open spaces in comparison to other locations and a higher proportion of supermarkets.

Helen Dickinson, Chief-Executive at the British Retail Consortium, says: “As the second wave of the pandemic sweeps the UK and additional restrictions come into force, footfall has steadily dropped during the month as many shoppers chose to stay at home. Despite this, September footfall remains an improvement on the previous month.”

“It is likely that rising case numbers and future restrictions may see footfall decline in the coming months. Sales at upcoming holidays, including Halloween and Bonfire Night, are also likely to remain muted,” she adds.

“Furthermore, with footfall remaining well below pre-coronavirus levels, the government must act now to provide certainty for business and prevent a cliff-edge of 100% business rates in April 2021. Such action would cripple the retail industry at a crucial moment for its recovery.”

Andy Sumpter, Retail Consultant – EMEA of ShopperTrak, comments: “This is a critical time when retailers are readying themselves for the start of the Golden Quarter and Christmas trading.”

“Retailers have already invested heavily in safety, compliance and alternate ways to shop, but will need to continue to hard-bake consumer confidence into shopping journeys to ensure they capitalise on festive footfall and, crucially, sales. This peak season, consumers are likely to shop earlier, less often, and with more purpose, making each visit more valuable than ever before.”