UK High Street Bounces Back: War-Weary Shoppers Return

The UK high street is experiencing a much-needed boost in footfall, as consumers return to physical stores after a challenging period. British Retail Consortium (BRC) figures show a significant increase in shoppers in May, reversing the downward trend seen in April.

This recovery coincides with a rise in consumer confidence, as the initial shock of the US-Israel war on Iran and its impact on fuel prices begins to fade. The conflict, which started in February, had caused a sharp decline in retail activity, but the latest data suggests a turnaround.

BDO, an accountancy firm, reported a 3.4% growth in high street sales compared to May 2025. While the BRC recorded a 2.6% year-on-year decline in footfall, this represents a substantial improvement from April's 10.7% slump.

The BRC's survey, covering high streets, shopping centres, and retail parks, revealed that high streets outperformed other retail destinations, with a decline of only 1.7%. Shopping centres, on the other hand, saw a 2.4% drop in footfall.

Helen Dickinson, BRC's chief executive, attributed the overall improvement to the warmer weather, which initially encouraged more people to venture out. However, she noted that record-high temperatures at the end of May deterred shoppers, particularly at shopping centres and retail parks.

Consumer confidence surveys further support this positive trend. YouGov and the Centre for Economics and Business Research found that consumer confidence in May rose by the most since 2021, with an index increase of 2.6 points to 104.9. This suggests that shoppers are feeling more optimistic about their financial situation and the economy.

The UK economy appears to be more resilient than initially feared, with the OECD predicting economic growth of 0.9% this year, an upgrade from its previous forecast.