15/04/2013

Poor Weather Affects Business Activity

Retailers and small businesses have said the poor weather in March has damaged business activity.

The British Retail Consortium (BRC) added that the number of people visiting shops last month fell by 5.2% compared to a year ago.

It said the worst affected regions were in the east Midlands and the south west of England, with customer footfall down by 8.1% and 7% respectively.

High streets, on average, saw the biggest drop in activity with visitor numbers falling by 7%. Out-of-town retailers followed with a 4.2% drop in footfall, while shopping centres – which offer the most protection against the weather – were down 2.4%.

However, despite footfall being falling sharply, last week the BRC said sales for the month were 1.9% higher its corresponding month a year ago, describing the situation as "encouraging".

Helen Dickinson, British Retail Consortium Director General, said: "The prolonged cold was the main culprit for deterring shoppers, especially compared against the far milder March of 2012.

"It's not all bad news: our March sales figures were fairly strong, even if you strip out the data for the Easter weekend which fell earlier this year than in 2012. This suggests that, when people did venture out, they bought things."

Meanwhile, the Federation of Small Businesses (FSB) said the March freeze cost the UK's small businesses £174m, with more than half of small firms admitting the cold weather damaged demand and closed businesses.

The FSB has claimed that the £174m it estimated had been collectively lost by small businesses broke down to an average loss of £1,580.

(JP/CD)

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