The hottest July on record has helped evaporate any retail recovery on the nation’s high streets, according to new data.
Figures released by the retail analyst FootFall show that the number of people visiting retail destinations fell 2.2% on the year last month, eliminating any immediate hopes for a high street recovery.
“With a post-World Cup hangover in demand likely during August and high temperatures set to continue, we would expect footfall levels to remain stifled,” said Natasha Burton, spokesperson for FootFall.
“Despite this, other consumer indicators are buoyant with the underlying rate of growth in retail sales rising to 3.6% for the last three months - the strongest growth in sales volumes for 18 months.”
In fact, shopper numbers posted their first month-on-month increase since April, rising 2.5% over June’s total, and the Confederation of British Industry’s (CBI) latest retail sales index reported an increase in sales for the fourth consecutive month.
However, Burton pointed out that sales growth is predicted to flatten off across the remainder of this year under the weight of higher fuel costs, record personal debt levels and rising unemployment.
She also said the Bank of England’s decision to raise interest rates to 4.75% was a “major setback” for the retail sector.
