Footfall wilts as shop vacancies mount

Latest data from the Scottish Retail Consortium also revealed that footfall has only grown in five of the last twelve months.

Growth this month fell below the three-month average of -0.3 per cent, the SRC said, which was worse than the 12-month average of 0.3 per cent.

Footfall fell in Scottish High Streets and Shopping Centres, but rose in Retail Parks:

High Street: -0.6 per cent, Retail Parks: 2.1 per cent, Shopping Centres: -2.2 per cent.

The town centre vacancy rate for Scotland rose marginally to 9.3 per cent in July, up from the 9.2 per cent rate in April 2017.

This remains lower than the average vacancy rate for the UK, which rose to 9.6 per cent in July from 9.3 per cent in April.

Ewan MacDonald-Russell, SRC Head of Policy & External Affairs | Scottish Retail Consortium, said: “This is a rather cheerless set of figures, heralding a second successive quarterly increase in the shop vacancy rate in our town centres coupled with shopper footfall sagging last month. Indeed, shopper footfall fell at a more pronounced rate of decline than witnessed over the past three-month period as a whole.

“Almost one out of every ten retail premises in Scotland now sits empty. Encouraging shoppers back is crucial to reducing the number of vacant premises, and retailers and shopping destinations are clearly going to have to work harder to attract custom through a blend of improvements including service, ranges, pricing and promotions. However, a more concerted and urgent effort is required from public policy to reduce the cost of doing business. Top priority should be capitalising on the upcoming Barclay Review to recast business rates for the decade ahead, in order to deliver a system which is modern, sustainable and competitive. This must lead to a reformed rates system and substantially lower tax burden which would increase retailers’ confidence about investing in new and refurbished shop premises, create jobs and help revive high streets and town centres.”

Diane Wehrle, marketing and insights director | Springboard, added: “July’s results might well mark a sea change in consumers’ willingness to spend, as it was the first time since January that footfall dropped during both retail trading hours and into the evening across the UK. In Scotland, daytime and early evening footfall dropped in July (by -1 per cent during the day and by -0.5 per cent between 5pm and 8pm), although a rise of +3.5 per cent in night time footfall demonstrated some resilience. Over the last few months the growing importance of the leisure based trip has become a key part of the narrative when talking about retail destinations, and this is evidence of a tightening of purse strings on casual dining and leisure trips.

“Declining footfall demonstrates that the drop in non-food sales is due to a reduced number of shoppers, so retailers that maintain their in-store footfall are at a clear advantage. Despite a contraction in fashion sales in July, consumers increased their spending on products for the home and out of town locations benefited. The +2.1 per cent increase in out of town footfall in Scotland was the seventh in as many months, averaging +3.2 per cent since January compared with +1.8 per cent over the same period last year. These results together with the high level of consumer borrowing and an increase in the vacancy rate to 9.3 per cent from 9.2 per cent in April – the highest it’s been since July 2015 - suggest that trading conditions could be reaching a tipping point into a period of restraint.”