UK retailers hoping for better weather and BoE cuts as footfall slips

(Alliance News) - The latest UK retail footfall for April was "unsurprisingly poor", with soggy weather a factor, and the sector now pining for a Bank of England interest rate cut to ease pressure on the consumer.

UK retail footfall declined last month, hurt by poor weather and an earlier Easter, according to the latest British Retail Consortium-Sensormatic IQ tracker on Friday.

Retail footfall fell 7.2% on-year in April, worsening from a 1.3% drop in March.

In high streets alone, footfall fell 6.9%, following a 1.5% decline in March. In retail parks, footfall was 6.3% lower, worsening from March's 3.5% fall. Footfall in shopping centres slid 7.2% in April, after a marginal 0.3% fall in March.

BRC Chief Executive Helen Dickinson said: "While UK footfall was impacted by poor weather last month, this was artificially exacerbated by the comparison with 2023, when Easter was in April. All locations saw declines on the previous month, and nearly all major cities performed similarly poorly. However, there was good news in Edinburgh, where footfall was positive once again owing to the investment in local shopping locations in the Scottish capital over the past few years."

Sensormatic analyst Andy Sumpter added: "After an early Easter fuelled improved footfall performance in March, there is little doubt lacklustre levels of store visits in April will have come as a blow for many retailers. Whilst a drop in traffic may have been expected due to Easter falling early and the May bank holiday falling late, this will have been of little consolation. An exceptionally wet April also seems to have dampened many shoppers' appetite for spending, especially in outlet and outdoor focused retailers. However, with financial pressures starting to ease for some, and indications of growing consumer confidence being reported, we will have to look forward to May to see if that filters through to improved in-store shopping."

Shore Capital Markets analyst Clive Black said the data "unsurprisingly poor". The retail sector is hoping for "Mrs Weather God to enter a happier mood and bring some sunshine", Black added.

The analysts said footfall comparatives for the second quarter will be hot.

"The last prolonged good spell of weather assisted trade was May-June 2023, when full-price clothing sales in particular boomed," he said.

Black added: "Another wish for the retail trade, amongst others in the UK economy, is a reduction in base rates. Quite whether or not the Monetary Policy Committee and so the Bank of England are brave enough to inch UK base rates down 25 bps before the start of summer remains to seen noting an extended outlook for stable interest rates in the USA, so could the UK decouple a little in the cycle from its bigger cousin."

By Eric Cunha, Alliance News news editor

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