Retail Parks Experience Growth in Footfall Amid Decline in Other Physical Retail Formats

What's Happening?

Retail parks in the UK have seen a year-on-year increase in footfall by 1.7% in July, contrasting with declines in high street and shopping center footfall, according to BRC-Sensormatic data. Overall UK footfall fell by 0.4% in July, an improvement from the previous month's -1.8%. High street footfall decreased by 1.7% year-on-year, while shopping centers saw a 0.3% decline. Despite the overall drop, retail parks have outperformed other retail formats, with some locations witnessing new outlets from major brands. Helen Dickinson, CEO of the British Retail Consortium, highlighted the need for government support to revitalize town and city centers, emphasizing the importance of substantial business rate cuts to attract footfall and reduce the number of empty shops.

Why It's Important?

The growth in retail park footfall suggests a shift in consumer preferences towards these locations, potentially due to their convenience and variety of offerings. This trend could impact the retail industry by prompting more brands to open outlets in retail parks, potentially leading to increased investment in these areas. The decline in high street and shopping center footfall indicates challenges for traditional retail formats, which may struggle to attract consumers without significant changes. The call for government intervention highlights the need for policy changes to support the retail sector, which is crucial for economic stability and employment.

What's Next?

The British Retail Consortium is advocating for bold business rate reforms to support retail, hospitality, and leisure premises. These reforms aim to reduce costs for businesses and encourage the reopening of empty shops. The government’s response to these calls could significantly influence the future landscape of UK retail, potentially leading to revitalized town centers and increased consumer engagement. Retailers may also need to adapt their strategies to align with changing consumer preferences, focusing on enhancing the appeal of retail parks and improving the shopping experience in traditional formats.