Shoppers dwindle in high street - Welsh Retail Consortium

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The Welsh Retail Consortium said there was "unprecedented change" in the retail industry

Shops in Wales have experienced a steep decline in footfall in February, says the Welsh Retail Consortium (WRC).

Shopping centres were hit particularly badly with a 5.9% drop in the 15th consecutive month to see a fall.

"These figures continue to place considerable pressure on retailers at a time of huge uncertainty," said Sara Jones, head of policy.

But footfall in retail parks showed an improvement after five months of decline.

  • Altogether, footfall - the measure of people entering a shop or shopping centre - across retail in Wales fell by 2.2% year-on-year in February; this is a steeper decline on the same month in 2018 when it was 1.6% down.
  • For shops in the High Street there was a drop of 2% after January's growth, but a lesser decline than experienced in February 2018.
  • Retail park footfall grew by 1.4%, a better performance than a year ago.
  • Daytime shopping fell by 3.6% in Wales, compared to a UK-wide drop of 1.5%.
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The WRC, which represents Welsh retailers, said the decline occurred despite February being the hottest on record.

However, benefits from shopping during the half term holiday may show up in March's figures.

Ms Jones added: "We've seen a really poor February. It wasn't entirely unexpected, but that follows almost six months of continual decline.

"We know what consumers themselves are feeling; their confidence hit, they're not keen to spend and that's in spite of the fact that real incomes are growing."

A new campaign was launched with the Welsh Government last November, promoting the retail sector and its importance in supporting 130,000 jobs.

Retail is also one of its four foundation sectors in the government's 10-year economic action plan.

Ms Jones said: "The Welsh Government has committed to an enabling plan for the industry and, with a £7m business rates hike for retailers alone from the start of next month, now more than ever we need to see this plan materialise."

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Analysis

Brian Meechan, BBC Wales business correspondent

How we shop as consumers is changing and retailers have tried to adapt to greater online demand by making visiting stores more of an experience and pushing the click-and-collect model.

But we've still seen problems recently including with big department stores like House of Fraser, Debenhams and John Lewis.

Business rates - which are due to increase next month - and rents are major overhead costs for retailers.

They're also expected to be some of the businesses worst hit by rises to the national living wage as it reaches its target of 60% of median earnings by next year.

Technology offers retailers an opportunity for more tailored marketing to its customers, but it also means there may be less demand for workers in future as automation becomes increasingly used in stores.