Retailers faced a challenging March as shopper footfall dropped across the UK, with economic uncertainty, a delayed Easter, and rising inflation all dampening consumer confidence.
Fresh data from the British Retail Consortium (BRC) and Sensormatic found that total UK footfall declined 5.4% year-on-year last month, a sharp reversal from February’s marginal 0.2% dip.
High streets saw a 4% drop in footfall, while shopping centres fell 5.8%. Retail parks fared better, down just 1.2% as their expanding leisure and hospitality offerings, along with free parking, helped cushion the blow.
The timing of Easter was a key factor, with holidays and seasonal shopping falling into April this year, unlike in 2024.
BRC CEO Helen Dickinson said: “With Easter falling in April this year, footfall in March could not compare to last year when families were already enjoying their Easter holidays. That said, retail parks held up better as their broader offer continues to attract shoppers.”
Northern Ireland experienced the sharpest decline in footfall at 9%, followed by Wales (-8.3%), Scotland (-6.6%) and England (-4.9%). London bucked the national trend, seeing only a minor dip.
Separate figures from MRI Software painted a slightly more optimistic picture, with March footfall across all retail destinations up 4.6% compared to February.
High streets saw a 7% month-on-month uplift, partly driven by Mother’s Day and end-of-month paydays. However, year-on-year comparisons were less rosy due to the Easter shift.
Retailers are now preparing for tougher trading conditions following the government’s latest budget, which came into effect in early April.
A report from Yoobic and Retail Economics suggests that while retailers are absorbing £1.76bn in cost pressures, they will pass on £1.72bn to consumers through price hikes—heightening concerns over affordability and footfall in the months ahead.
External pressures, including the resurgence of global trade tensions, have also cast a shadow over the retail landscape. Concerns are growing over the potential impact of US tariffs introduced by the Trump administration.
Dickinson warned: “Global uncertainties resulting from tariffs and a potential economic slowdown could reduce the appetite for shopping trips in the coming months.”
The cautious consumer mood is echoed in Deloitte’s latest consumer tracker, which found that nearly half of shoppers have been spending only on essentials. The data also showed a rise in job insecurity and weak wage growth, with starting salaries stagnating and recruitment falling for the 30th consecutive month.
Some retailers are already taking action. Tesco, Asda, and Sainsbury’s have launched major price-cutting campaigns to entice back price-conscious shoppers. Asda, in particular, has embarked on its biggest round of price reductions in 25 years.
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