Page 30 - July 2020

MARK FAITHFULL

Following

the Money

With the UK joining the rest of Europe in reopening stores and
malls, Mark Faithfull takes a look at what fate awaits British retailing

UK RETAIL’S £37BN HOLE FOR 2020 UK HIGH STREET INITIATIVE
nglish stores may have reopened on package of support to help high streets to our £50M Reopening High Streets Safely Fund, the
15 June but this is likely to be a short- get back on their feet was launched in June, work of the Task Force will support our high streets
E lived boost and retailers will still lose A with The High Streets Task Force established through this challenging time and ensure they have
£37bn this year, according to GlobalData. to provide access to tools, training, information and the tools they need to get back on their feet.”
Sofie Willmott, Lead Analyst at GlobalData, advice for high streets across England. Mark Robinson, Chair of the Task Force,
predicts that 44.8 per cent of UK consumers This support is open to local councils and all admitted: “No-one underestimates the
have spent more online as a result of the outbreak organisations involved with high streets and will challenges to our town centres, but this long-
and as a result of changing shopping habits the include free access to online training programmes, term initiative, running until 2024, shows the
company forecasts online non-food expenditure webinars, data and intelligence on topics including government’s commitment to our towns and
will rise 14.3 per cent this year (versus a pre- recovery planning and coordination, public space the transformation required. I look forward
Covid-19 forecast of +6.5 per cent). and place marketing. The support will form one to making change happen. The Task Force has
“However, the increase in online spending will part of the Task Force’s four-year programme, already provided invaluable advice to town
not be able to prop up the total market as physical which will focus on the long-term transformation centre stakeholders in the current crisis and
stores still account for the vast majority of sales,” of town and city centres and helping communities we will continue to build capacity, promoting
she said. “It will take time for footfall to return to reimagine and revitalise their high streets. best practice, led by research and evidenced by
normal as many will remain cautious and choose Mark Robinson, Co-Founder of Ellandi, is the data. The Task Force will provide a rallying point
not to visit shopping locations due to health Chair of the Task Force Board and High Streets for all of the people who care about our high
concerns or money worries with job security and Minister Simon Clarke MP said: “Combined with streets and advocate the change that is needed.”
personal finances remaining a burden for many.”
She warned: “Clothing is the product area that
most visitors are looking forward to shopping
for as they start to anticipate a return to social
activities and buy into new season trends.
However, we expect clothing & footwear to
be the worst hit sectors this year with spend
predicted to fall over 30 per cent as shoppers
are unlikely to buy more to make up for their
lack of purchases across March, April and May.”
A number of clothing and footwear
players have already fallen victim to the
pandemic with Monsoon Accessorize
tumbling into administration recently before
being bought by its founder. Others such
as Oasis, Warehouse and Laura Ashley have
also been rescued but their stores left out of
deals leaving even more empty units on high
streets which landlords will struggle to fill.

MY OPINION: UK RETAIL’S FALSE DAWN
I gnore the latest retail sales statistics, right now they are as meaningless
as all those webinars proclaiming to predict the future of retail.
In fact, England’s first retail week back from Monday 15 June delivered
a rather predictable picture. Exhibit 1: the idiots rugby-scrumming through
mass crowds at Bicester Village (a destination that surprisingly did not
cover itself in glory on the opening Monday), Nike and Primark on Oxford
Street; Exhibit 2: Less dramatic images of quiet malls and high streets as
customers took baby steps back to high streets and malls.
In fact both mirrored experiences across Europe, where most retail
markets opened ahead of England. German centres initially were at 40-60
per cent footfall and customers generally stayed for less time, didn’t browse
but spent strongly. So targeted, purposeful trips have become the new norm.
The UK appears on a similar trajectory. And with F&B opening on 4 July,
it seems likely that in the short term at least hospitality may be largely split
between the young who are itching to go out and the older generations
who may well prefer to stay home.
As for the rest, well much is in the hands of destinations, local authorities
and operators. The future should be packed full of innovation and if a crisis
isn’t a good time to start, then when is?
50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018