The crisis on the High Street is deepening after the biggest fall in shopper numbers since Covid lockdowns five years ago.
As the industry reels from the collapse of firms such as Claire’s Accessories and looming closures at TG Jones, the British Retail Consortium (BRC) said shopper numbers were 10.7 per cent lower in April than a year earlier – the biggest dip since March 2021 during pandemic restrictions.
While the figure was skewed by Easter falling in April not March this year, across the two months the figure was still down 3.9 per cent year-on-year.
Experts said consumers are reining in spending after an inflation shock emanating from war in the Middle East.
‘This was echoed by researchers at RSM, who warned the situation could get worse as consumers ‘wait and see’.
BRC chief executive Helen Dickinson said: ‘The conflict pushed consumer confidence to new lows, prompting consumers to make fewer trips to shops.’
High Street woe: Experts said consumers are pulling back in response to looming bill increases amid the war in the Middle East
High streets, retail parks and shopping centres were all affected, said a report by the BRC.
Andy Sumpter, a retail consultant at Sensormatic, which conducted the research with the BRC, said the figures were a ‘sobering reminder of how fragile the recovery in retail footfall remains’.
Fuel prices have risen dramatically since the outbreak of war, and worries about increases to grocery and energy bills could also be trickling through.
Families have less left each month after buying essentials, according to consultancy RSM UK, down from an average of 26.9 per cent in February before the war, to 23.1 per cent in April.
Jacqui Baker, head of consumer markets at RSM UK, said: ‘Unfortunately, the slowdown in spending is expected to accelerate as consumers take a “wait and see” approach.
‘The first area households typically cut back on during an economic downturn is retail spend and dining out, meaning there’s likely to be tougher times ahead for consumer-facing businesses.’
The news came just days after hundreds of jobs were put at risk at the rebranded WH Smith shops, TG Jones.
The high street arm of WH Smith was bought last year by private equity firm Modella for £40million, and rebranded as TG Jones, which is now set to close up to 150 of its 450-plus stores and has told its 5,000 employees to expect redundancies.
And last month, Claire’s shut its 154 shops in the UK and Ireland, with around 1,300 workers made redundant at the fashion accessories chain.
Retailers have said the Government must take action on domestic policies within its control to help businesses stave off price rises, job losses and shop closures.
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