Retail footfall rose in March as Easter boosted shopping activity, but industry leaders fear consumers’ cost of living concerns could dampen the outlook.
Total footfall rose 2.4 per cent year-on-year last month, but this was distorted by an early Easter which increased footfall in the final days of the month, the British Retail Consortium and Sensormatic said.
High street footfall edged up 2 per cent in March, following a drop of 5.4 per cent in February. Shopping centre visits were up by 2.6 per cent, an improvement on the 5.5 per cent drop seen the month before.
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 hikes and inflation fears.
Footfall increased year-on-year across all nations, rising 1.6 per cent in Wales, 2.3 per cent in England, 3.2 per cent in Scotland, and the largest increase of 4.9 per cent in Northern Ireland.
Manchester saw the largest increase in shopping activity, seeing total footfall rising more than nine per cent, while footfall in London edged up slightly more than the national average, at a rate of 3.3 per cent.
Fragile: Retail footfall rose in March as Easter boosted shopping activity, but business leaders fear tax and employment costs could dampen the outlook
While an increase in footfall in March was welcome, following 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.
BRC chief executive Helen Dickinson said: ‘With Easter and the school holidays falling earlier this year, retailers were expecting a stronger boost to footfall than March delivered.
‘Shopping centres outperformed other locations and cities like Manchester continued to do well, but overall growth fell short of expectations.’
She added: ‘Looking ahead, the conflict in the Middle East is weighing heavily on both retailer and consumer confidence, with further pressure on the cost of living potentially likely to hit footfall.
‘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.’
Andy Sumpter, from Sensormatic, said: ‘Without the final week’s Easter bump, March would likely have remained in negative territory – raising questions over how April may perform, particularly against much stronger comparables last year.
‘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.’
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