Summer washout hits retailers as footfall in shops falls by 1.6% with businesses straining under the 'burden' of regulation

Published: 03:32 EST, 14 September 2015 | Updated: 03:32 EST, 14 September 2015

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Last month's washout weather and later bank holiday hit retailers as footfall across UK shopping centres, high streets and retail parks dropped 1.6 per cent, the biggest fall since last November

Footfall on the high street fell by 2.3 per cent in August, while the number of visitors to shopping centres decreased by 2.8 per cent, the British Retail Consortium report said.

The overall fall - the biggest decline since a 2.4 per cent drop in November 2014 - follows a 1.1 per cent decline in July, and is below the three-month average which shows a 1.4 per cent slide.

Washout: Last month's poor summer weather and later bank holiday hit retailers as the number of shoppers visiting UK shopping centres, high streets and retail parks dropped by 1.6 per cent in August

In retail parks, year-on-year footfall in August increased by 1.7 per cent, but this was the slowest rise since May and below the three-month average of 2.5 per cent.

Helen Dicksinson, director general of the BRC, said today's figures 'are a clear demonstration of the continued pressures the UK retail industry is facing.'

Ms Dickinson added: 'As we start the long march to Christmas, retailers will want to see an increase in shopper numbers in all store locations.

'Most will also be hoping for a decrease in any financial or regulatory burdens heading their way from the government.

'These only make the job of getting the right products to UK consumers at the right price harder at a time when the hurdles to running a successful retail business are high enough.'

Today's findings from the BRC come after blue chip retailer Next last week outlined how it would be affected by the national living wage policy, which will see workers aged 25 and over paid £7.20 an hour from next April, rising to £9.00 from 2020.

Next said the cost of implementing the policy could rise to £27million a year and result in higher prices for consumers.

Living wage: High street retailer Next last week outlined how it would be affected by the national living wage policy, which will see workers aged 25 and over paid £7.20 an hour from next April

Earlier this month, a BRC/KPMG Sales Monitor said UK retail like-for-like sales decreased by 1 per cent in August compared with a year earlier, due to the weather and the later August bank holiday, hitting back-to-school sales of clothing, footwear and stationery.

On Thursday, official data from the Office for National Statistics is expected to show a dip in retail sales last month.

Howard Archer, chief UK and European economist at IHS Global Insight said he expects year-on-year retail sales to have risen by 3.3 per cent year-on-year last month, but to have fallen by 0.2 per cent on a month-on-month basis.

Mr Archer said: 'While a dip in retail sales in August would further fuel speculation that UK GDP growth has slowed in the third quarter, the outlook for retail sales and consumer spending still seems pretty bright.

'Indeed, the Confederation of British Industry’s August distributive sales survey indicated that retailers are upbeat about the prospects for sales over the next three months.'

'Consumer confidence in August was at the equal highest level (with June) since January 2000, while the fundamentals still look solid overall for consumer spending. Inflation is negligible (0.1 per cent in July), underlying annual earnings growth has strengthened and at 2.8 per cent in the three months to June is now substantially above inflation and employment is elevated (despite coming off its recent record high). Very low interest rates are also supportive.'