July’s heatwaves kept UK shoppers away from high street

The British Retail Consortium (BRC), in a report for retail body, found that UK shoppers avoided high streets during July's heatwave, opting for online purchases instead. The visits to high streets dropped by 3.8% year on year, following a 6.2% decrease in June, according to the research by Sensormatic for the BRC. Visitor numbers at shopping centres also declined, though those at retail parks rebounded, resulting in a 2.1% overall decrease in attendance at all shopping destinations compared to the same period last year.

Helen Dickinson, the BRC chief executive, commented on the impact of the heatwave on retail footfall, particularly in London, which experienced a 5.3% decrease in shoppers compared to a 3% drop across England. In contrast, Scotland and Northern Ireland saw an increase in footfall, with 2.7% and 2.5% growth respectively. Wales reported a flat footfall, given the less intense weather conditions in the region.

Dickinson highlighted the growing influence of climate change on extreme temperatures in the UK and how retailers are responding by investing in mitigations, such as increased air conditioning and more efficient refrigeration units, as well as sustainability initiatives to reduce carbon emissions. However, she pointed out that business rates often negatively affect stores that make such investments, urging the government to reconsider this problematic system.

The figures reveal the varied outcomes for retailers during the heatwave, with those heavily reliant on physical stores potentially facing challenges. Fashion retailer Next, for instance, upgraded its profit guidance for the third time this year, attributing its growth to the sunny weather and the release of pent-up demand in the Middle East and northern Europe in the 13 weeks leading up to 1 August.

The boost primarily stemmed from sales of other brands under the Next umbrella, including Gap, Reiss, and Joules, coupled with strong online sales. However, trading in its physical stores suffered amid the sweltering heat. Fashion, along with supermarkets and technology sellers, is anticipated to be one of the key winners in retail this summer, as consumers purchase cold food and beverages, fans, and air conditioning to combat the heat.

Conversely, furniture and garden plants are projected to be among the losers, facing pressure from the cost of living, a sluggish housing market, and reduced plant planting due to extreme heat and drought.