The number of shoppers across Wales dropped in October according to new figures by WRC-Sensormatic.
Sara Jones, head of the Welsh Retail Consortium, said: “After a strong September performance, Welsh shopper numbers slipped in October but still recorded a marginal improvement compared with the same period the year before.
“Pressure is mounting on the retail sector with little sign pre-Christmas trading has taken off as we progress through the Golden Quarter, a key period which traditionally helps tide retailers over the traditionally leaner months early in the new year.
“Following the budget, concerns are growing as cost pressures build and will start to take their toll.
"Wales’ retailers will face a £120 million increase in their tax bill following the Chancellor’s announcement that employer national insurance contributions are to rise, impacting their ability to keep costs down for both consumers and colleagues.
"All eyes will now be on the Welsh Government’s draft budget, and particularly their plans for business rates."
Andy Sumpter, retail consultant EMEA for Sensormatic Solutions, said: “While shopper traffic still remained positive compared to 2023 last month, the caveat is that we still expect to see a bumpy recovery as a myriad of market conditions - from the cost of living to shaky consumer confidence around the budget – continue to make footfall performance volatile."
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