With their biggest strike for 30 years rolling over the U.K., British rail unions have brought 17.7 percent fewer shoppers to the greater London area, and 27 percent less to the city center compared to last week. Compared with the 2019 pre-Covid numbers, footfall was down 19.3 percent across U.K. high streets and 49.2 percent in central London, according to the data research company Springboard.
British media report that it is unclear how long the strikes will continue, even as labor talks continue. The union is seeking a 7 percent pay hike, while the state-owned operator is eyeing a 2 percent increase as commuter patterns have yet to return to pre-Covid levels.
There are more European countries where rising prices put pressure on retail from two sides: while gas and food take a bigger part of consumer’s incomes, there is less left to spend on nice-to-haves – and unions are pushing for sizable wage increases leading to the risk of strikes as seen in the U.K.
Helen Dickinson, CEO of the British Retail Consortium, states: “It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation. Supply chain issues including rising commodity and transport costs, a tight labour market and higher energy bills are forcing retailers to increase their prices, contributing to wider inflation. Profits may be squeezed further, as retailers make significant investments in their own operations and supply chains to mitigate against future price rises for consumers.”
