July's heatwaves kept UK shoppers away from high streets, with many choosing to buy online instead as temperatures in some areas rose above 30°C. According to research from Sensormatic for the British Retail Consortium (BRC), trips to high streets fell by 3.8% year on year in July, following a 6.2% decline in June. Shopping centres also saw fewer visitors, but retail parks returned to growth. Overall, footfall across all shopping destinations decreased by 2.1% compared with the same month last year.
Helen Dickinson, BRC chief executive, said: “The heatwave continued to bear down on retail footfall in July, with high streets worst affected. London was hit particularly hard as soaring temperatures made tube and train travel less attractive, with some commuters and shoppers opting to stay home.” The capital saw a 5.3% drop in shoppers, compared with a 3% decline across England. Scotland and Northern Ireland saw increases of 2.7% and 2.5% respectively, while Wales remained flat due to milder weather.
Dickinson added: “Climate change continues to deliver more and more extreme temperatures in the UK. Retailers are responding by investing in both mitigations – such as more air conditioning and more efficient refrigeration units – and in sustainability initiatives aimed at reducing carbon emissions. Unfortunately, business rates often punish stores for such investments, showing the need for government to look again at this broken system.”
The figures highlight the differing fortunes of retailers during the hot spell, with those more reliant on physical stores potentially suffering. On Wednesday, fashion and homewares retailer Next upgraded its profit guidance for the third time this year, citing sunny weather and “pent-up demand” in the Middle East and northern Europe in the 13 weeks to 1 August. Growth was led by other brands Next sells, including Gap, Reiss and Joules, and strong online sales. Trading in its stores faltered during the sweltering heat.
Fashion is expected to be one of the winners in retail this summer, along with supermarkets and technology sellers as people bought cold food and drink, fans and air conditioning to cope with the heat. Furniture and garden plants are among the losers, with the former under pressure from the cost of living and slow housing market, while fewer plants have been planted due to extreme heat and dry weather.