LONDON — The British Retail Consortium reported a 2.6% year-on-year decline in UK retail footfall for May. This occurred as BDO announced a 3.4% year-on-year increase in total high street sales for the same month.
Retail footfall decreased by 10.7% year-on-year in April. Helen Dickinson, Chief Executive of the British Retail Consortium, said, "While total UK footfall remained down on last year, it was a significant improvement on April's double-digit drop." High street footfall experienced a 1.7% decline year-on-year in May, while shopping center footfall decreased by 2.4% year-on-year.
Dickinson said, "While the warmer weather initially encouraged more people to the shops, the record-breaking temperatures at the end of the month resulted in a sharp decline in footfall, particularly at shopping centres and retail parks." She added, "Only high streets bucked the trend, as those who were out and about took the opportunity to pop into their local stores."
A consumer confidence index increased by 2.6 points in May, reaching 104.9. This marked the largest increase for the index in five years. Additionally, a consumer housing market outlook index increased from 128.6 to 130.5 during May.
The OECD projected 0.9% national economic growth for the current year, revising an earlier March forecast of 0.7%. The unemployment rate increased to 5%. Energy bills are projected to increase later in the current year, and fuel prices saw an increase following a Middle Eastern conflict that began in late February.
Sophie Michael, Head of Retail at BDO, said, "Retailers will have welcomed this month's sales growth but must brace themselves for further challenges ahead." Michael added, "The longer-term picture for retailers remains fairly bleak; already high costs may go even higher due to the closure of the strait of Hormuz and increasing energy prices, which may also force consumers to tighten their purse strings."