Is August Retail Shift To Out-Of-Town A Blip Or Trend?

The latest data from the British Retail Consortium (BRC) showed interesting data indicating a shift from high street to out-of-town shopping in August. But is this part of a trend or down to some specific circumstances only affecting last month?

During the month, footfall fell overall by 0.4 per cent compared to July, but this split between a drop of 1.8 per cent in shopping centres and 0.3 per cent in high streets on the one hand and a rise of 2.6 per cent at retail parks.

BRC chief executive Helen Dickinson said many people were put off town centres and shopping centres by disorder (or the threat of it) in the wake of the Southport stabbings.

Noting that footfall in areas where trouble happened or was anticipated “was severely impacted”, she added: “Retail parks saw footfall levels rise in the week following the riots as some continued to avoid high streets and shopping centres.”

This may have significant implications for retail property maintenance. Should efforts be focused on maintaining, enhancing and expanding out-of-town retail in anticipation of a growing trend, or should they be balanced on the basis that, despite wild claims by the likes of Elon Musk that Britain was on the brink of civil war, this was just a passing event?

Now may be a good time to find out, as a recovering economy with low inflation and falling interest rates is likely to be fertile ground for a strong retail sector recovery, which suggests footfall numbers will be up.

Evidence of upbeat sentiment includes research by Havas Media Network. This found that 67 per cent of Britons plan to spend more in the last three months of this year than last year, suggesting a bumper Christmas is on the way for retailers. Indeed, unlike in August with its special circumstances, it may be retail stores in all kinds of locations are very busy.

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