Low consumer confidence ahead of a potential tax-rising Budget kept many shoppers away from UK retail locations in September, according to latest data.
But Belfast fared third best of all UK cities for footfall in the five weeks from August 1 to October 4, growing by 1.6%, while Northern Ireland as a whole saw just a 0.5% year-on-year decline in shopper numbers compared to dips across England (down 1.8%), Scotland (down 2.3%) and Wales (down 2.5%).
“It’s clear that consumers remain circumspect, perhaps concerned by the seemingly endless media stories about what will or won’t be in the UK Budget at the end of November,” according to Neil Johnston, director of the NI Retail Consortium, which produces the data in association with Sensormatic.
NI Retail Consortium director Neil Johnston
“Consumers are also being influenced by the persistence of inflation, especially food inflation which has risen off the back of the last Budget, when they do venture out to local shops.”
He added: “Retailers have their own concerns about what will be in the Budget. Last year’s budget added to the costs of employment, which is making it harder for retailers to keep prices down.
“Healthy competition between retailers keeps price rises to a minimum but when government adds more tax and regulation such as the plastics or packaging tax some of that cost is inevitably passed on to consumers.”
Andy Sumpter from Sensormatic said: “The month began with a modest uplift, driven by back-to-school shopping, but momentum was quickly disrupted.
“Retailers will now be hoping that September’s slowdown was less a sign of retreat and more a pause for thought.”