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Summary
- UK retail sector’s total footfall in June fell by almost 28 per cent from pre-pandemic levels two years ago as shoppers are making more purposeful trips.
- The retail sector is expected to improve further following the final lockdown phaseout.
The UK retail sector’s total footfall witnessed a fall from the levels seen before the pandemic. June 2021’s total footfall fell by 27.6 per cent, compared to the total footfall recorded in June two years ago, according to research by retail trade body, British Retail Consortium and insights company Sensormatic IQ.
The news comes after the UK government delayed the final easement of lockdown related restrictions from 21 June to 19 July, also known as Freedom Day, due to a rise in the delta variant of covid-19 cases in the UK.
The June figures were marginally higher by 0.1 per cent from the total footfalls recorded in May’s two year drop. The June data though was better than the three-month average drop of about 31 per cent. While the retail sector has been among one of the best performing brick and mortar stores due to open spaces, footfalls were down from pre-pandemic levels as shoppers are making fewer and more purposeful trips.
The June figures indicate that despite not meeting pre-pandemic levels of footfalls, the sector in smaller towns and cities was boosted by a rise in staycations.
Helen Dickinson, the CEO at British Retail Consortium, said the retail companies expect footfall to improve further once the final easement of restrictions come into play, most importantly as office workers resume going back to working in bigger cities.
In this article, let us take a closer look at how 3 FTSE 100 listed stocks in the retail sector performed following the news:
- Next PLC (LON: NXT)
FTSE 100 listed company and high street fashion retail major Next PLC recently submitted an application for building a huge distribution centre located in Waltham Abbey, which will have approximately 1,049 vehicles travelling to and from the warehouse location.
The distribution centre is expected to bring in a business rate revenue of up to £1.3 million every year. However, its application currently but faces opposition from certain climate campaign groups due to potential traffic related environmental impact.
(Image Source: Refinitiv)
Next’s shares closed at GBX 7,798.00, down by 2.38 per cent on 8 July. The company’s market cap stood at £10.619 billion, and its annual return was at 66.87 per cent.
Also Read: What Led to the Surge in Fashion Retailers Superdry And Next Stocks?
- JD Sports Fashion PLC (LON: JD)
Another FTSE 100 listed retail major JD Sports Fashion, announced a new sponsorship deal with the Premier League, becoming the official sleeve partner for Norwich City for the next season.
(Image Source: Refinitiv)
JD Sports Fashion’s shares closed at GBX 937.60, down by 4.29 per cent on 8 July. The company’s market cap stood at £10.105 billion, and its annual return was at 42.58 per cent.
- Kingfisher PLC (LON: KGF)
Another FTSE 100 index constituent Kingfisher PLC is a home improvement supplier and retailer. The company announced recently new carbon emission reduction targets aligning with the Paris Agreement’s climate goal of capping global temperature rise to 1.5 degree Celsius. The targets were approved by the Science Based Target initiative.
Kingfisher also reported that over £5 billion of its annual sales were generated from creating sustainable homes and new community targets.
(Image Source: Refinitiv)
Kingfisher’s shares closed at GBX 365.60, down by 2.77 per cent on 8 July. The company’s market cap stood at £7.719 billion, and its annual return was at 65.13 per cent.
Also Read: 3 FTSE Retail Stocks in Focus After Kingfisher Shares Surge
