Hottest July on record stifles retailers hopes of recovery
Figures released today by FootFall reveal the first month-on-month increase in UK shopper numbers since April, recording a 2.5% upturn in footfall levels – the strongest monthly increase in 2006 to date.
Despite this, 2006 remains a disappointing year for retailers who have been hit hard by the heatwave and consumer apathy on the High Street. The number of people visiting retail destinations in July – the hottest month in the UK on record – was down by 2.2% compared to July 2005.
Natasha Burton at FootFall, comments: “With a post-World Cup hangover in demand likely during August and high temperatures set to continue, we would expect footfall levels to remain stifled. Despite this, other consumer indicators are buoyant with the underlying rate of growth in retail sales rising to 3.6% for the last three months – the strongest growth in sales volumes for 18 months.
“July’s Distributive Trades Survey from the CBI reported the fourth consecutive increase in sales and Experian’s short-term forecasts indicate recent gains will be sustained. However, sales growth is predicted to flatten off across the remainder of 2006 with higher fuel costs, record personal debt levels and rising unemployment creating significant uncertainty for consumers and retailers alike.
“Thursday’s surprise decision to raise interest rates to 4.75% by the Monetary Policy Committee was a major setback for the sector, as it puts further pressure on stretched household finances. The overall prospects for retailers for the rest of 2006, therefore, remain firmly in the balance.”
Retail FootFall Index (RFI) UK – July
Change for July month on month (July 2006 v June 2006) +2.5% Change for July year on year (July 2006 v July 2005) – 2.2%
