The Welsh Retail Consortium is calling for more support for the sector as footfall figures fell in June. 

The organisation said that rises in the National Living Wage and Employer National Insurance had contributed to a “hammering” for the retail sector, adding that retailers needed support to deliver investment into stores. It said it wanted to see a positive outcome to business rates reform in Wales to avoid an even higher tax burden for retail.

According to WRC-Sensormatic data, Welsh footfall decreased by 3.3% in June (YoY), down from -0.4% in May.

Shopping centre footfall decreased by 5.1% in June (YoY), up from -5.4% in May. Retail park footfall decreased by 0.7% in June (YoY), down from 1.2% in May.

In June, footfall in Cardiff decreased by 4.0% (YoY), down from -2.1% in May.

Sara Jones, Head of the Welsh Retail Consortium, said:

“June footfall figures failed to ignite a summer shopping renaissance, with numbers down across all retail destinations. Shopping centres across Wales were hit particularly badly by the decline in footfall, with a notable fall of 5.1%.

 

“With July seeing Wales’ women’s football team in action in the Euros, and with big name concerts and events across the capital and Welsh cities and towns, retailers will be hoping that last month’s figures will be buoyed up by a return to our high streets.

 

“Whilst retailers are working hard to deliver vibrant, engaging shopping experiences that attract customers and boost footfall, they can’t sail a solo recovery to help boost the Welsh economy. Given the hammering the industry has taken over recent months, with increased business rates and hikes to Employer National Insurance and the National Living Wage, the Welsh Government should consider what more can be done to boost the sector and support retailers to deliver investment back into Welsh stores. All eyes are now on the plans for Welsh business rates reform and ensuring this doesn’t further dampen retailer confidence and lead to a higher tax burden over the next 12 months.”

Andy Sumpter, Retail Consultant EMEA for Sensormatic Solutions, said:

“June delivered heatwaves, storms, and what could be the hottest June on record – but even the sunshine wasn’t enough to spark a retail revival. Total UK footfall was down -1.8% year-on-year, a gentler drop than the -2.3% seen in June 2024, but still a decline on last year’s decline. Wales saw a steeper decline of -3.3%, reflecting the broader regional challenges. UK High Streets fell -3.0%, while Retail Parks and Shopping Centres dipped -1.1% and -1.6% respectively.

 

“One year on from the General Election, with footfall still in the red, it appears that consumer confidence has yet to find its feet. That said, the rate of decline at a UK level is easing, and with summer now in full swing, retailers have an opportunity to turn seasonal footfall into sustained momentum – especially those who can deliver value, experience, and convenience in equal measure.”