Heatwave drives shoppers off high streets in blow to retailers
Record June temperatures have driven British shoppers off of the high streets in a blow to already struggling retailers.
The heatwave pushed retail footfall across the UK as much as 10 per cent lower this week, according to data collected by Sensormatic for City PM.
In London, where temperatures reached 36C, high streets took an even bigger blow from the sweltering heat, as retailers missed out on commuter footfall as workers opted to stay at home.
On Sunday, as temperatures began to pick up, retail footfall in the capital slipped by 6.9 per cent, before dipping by 10.8 per cent on Tuesday and 13.3 per cent on Wednesday.
The UK’s high streets saw the biggest drop in shopper traffic on Thursday, down 9.8 per cent, while shopping centre footfall held up, suggesting Brits opted to make the most of air conditioning.
High street footfall plummets
Retail park footfall inched up by 0.2 per cent on Thursday, which analysts at Sensormatic said could mean that Brits were dashing to their local DIY and homeware stores to pick up fans and air-conditioning units.
June’s plummeting shopping footfall repeated the hit to retailers seen at last month’s heatwave, when high street traffic dropped by 19 per cent on 25 May, the UK’s hottest ever May day.
Andy Sumpter, a retail consultant at Sensormatic, told City PM: “UK consumers opted to stay away from stores in a bid to beat the heat, making only short or necessary trips to shops.
“We expect that as the heat dome pushes up temperatures further in the coming days that footfall will continue to be constrained as consumers try and stay cool.”
But boozers take boost
Harvir Dhillon, an economist at the British Retail Consortium (BRC) trade body, told City PM that he hopes retailers’ online shopping platforms will have taken a boost from falling in-person custom.
He said: “It is unsurprising to see a dip in footfall during this week’s extreme heat, as consumers naturally avoid shopping trips to stay safe and cool.
“But as with previous extreme weather events, consumers are quick to adapt their shopping habits, whether that means shifting spend online or visiting stores during cooler parts of the day.”
While retailers will be hoping for cooler weather, British pubs saw footfall soar during the heatwave. Transactions at bars and pubs were 12 per cent higher this week, according to payments platform Square.
Earlier this week, City PM revealed that City institutions including JP Morgan Chase, ING and Deutsche have allowed their employees to work from home during the heatwave.