July shop footfall ‘feeble’ as Scots prioritise eating out and holidays

Footfall in Scottish shops in July was “feeble” according to a leading retail body, with Scots prioritising “experiences, eating out and holidays” over shopping trips.

The number of visitors to Scottish shops fell 2.3% in July compared to the same period last year, disappointing retailers who had been hoping for a “shopper dividend” on the back of an improving economic picture.

The figures, from the Scottish Retail Consortium (SRC)-Sensormatic IQ footfall monitor, show that only Edinburgh bucked the downward trend, with the capital seeing a 1.4% increase in footfall compared with July 2023.

Glasgow, on the other hand, saw a 4.8% decline in shoppers, a marked contrast to its June performance which saw its shopper count rise by 2.2% compared with June 2023.

David Lonsdale, director of the SRC said: “Scots prioritised experiences, eating out and holidays over visits to stores in July, with shopper footfall down 2.3% compared with the same period the year before.

“This weakness was felt across all retail destinations compared with the month before. That said, store visits in Edinburgh remained a little above the levels of 12 months ago.

“Shopping centres also continued to outperform the Scottish average for the third month in a row.

“These feeble footfall results will be a disappointment for retailers who had been hoping for a shopper dividend from the combination of falling shop price inflation, cuts in employee national insurance contributions and council tax freeze, and the rosier outlook for household disposable incomes.”

The downturn comes after an “encouraging” June performance in which shopper numbers rose by 0.2% on the year before.

This continues what Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, described as a “yo-yo-ing” in shopper numbers over the last 12 months.

“After an encouraging performance in June, where footfall showed the first positive year-on-year growth for a full eight months, July’s footfall faltered with shopper traffic falling back into decline compared with 2023,” he said.

“With only four of the last 12 months returning yearly footfall gains, and as we approach almost a full year of shopper counts yo-yo-ing, it’s clear the long tail of the cost-of-living crisis is continuing to rattle consumer confidence, prompting spending caution and making consumer behaviour less predictable.

“With election fever now over and the school holidays in full swing, retailers will be hoping that spells a positive outlook for store performance in the months to come.”

The SRC-Sensormatic IQ footfall monitor figures for the four weeks 30 June 2024 to 27 July 2024 were calculated using precise shopper numbers entering retail stores across the UK.