The
With the news of the collapse of the
It's therefore not surprising that 61% of Brits are worried that the high street as we know it is at risk of disappearing, with store closures permanently changing the retail landscape, according to research
Certainly, shops have been some of the biggest economic casualties of the pandemic. Following the second lockdown and now the prospect of the majority of us living under on-going restrictions under the tier system, the outlook for the high street is increasingly bleak.
So what does the future hold for our town centres?
From surveying 1,000 consumers in the
* 61% of Brits are worried the high street will disappear completely in the next ten years due to the ever increasing number of big-name store closures.
* Fashion, food, beverage and value brands are predicted to be the biggest victims of the high street due to online competition.
* Convenience is a key factor that affects our shopping habits.
Whilst the high street has been in decline for many years, the problem has accelerated at an alarming rate this year. According to research by
Of course the pandemic has been the final nail in the coffin for many retailers, with the increasing popularity of online shopping intensified by the Covid restrictions.
Online sales soar to new hights
In February this year 19% of all
Shopping habits look set to change for good
Worryingly for stores, and the vast majority of us who will be sad to see the high street go, the habit of shopping online looks set to be the norm in future for many people. 87% of the
With recent research finding that 66% of people don't think the Government has done a good job in managing the pandemic, it's also likely that many may continue to avoid physical shops due to fear of infection, in which case the domination of online sales looks set to continue.
Why are so many consumers choosing the online option?
Convenience has always been one of the benefits of online shopping with 64% of those in our survey stating that this was the key reason that they chose to shop this way.
It's this desire for ease that is behind the phenomenal success of
Why has
The unprecedented growth of
Why is their business strategy so successful?
Their ability to cross-subsidise in this way clearly gives them an unfair advantage over other retailers, as does their ability to minimise their tax liabilities in the
They even undercut their own sellers!
Job losses in the retail sector hitting an all-time high
Recent data by the
In comparison
So what needs to change if the highstreet is going to survive?
One trend that has emerged during the pandemic is the desire by many consumers to support local businesses. Whilst many of the big names are finding themselves in trouble, smaller independent retailers are stepping up and adapting their offering to fill the gap. Some have developed home delivery and online options for the first time which has helped them to reach a widder customer base.
We spoke to retail expert
"There has been a swell of goodwill for both retailers and community groups that have come together during these difficult times. Consumers will be more aware of the potential of local shopping than they perhaps may have been previously."
Certainly, the desire for a sense of community appears to be strong at a time of great uncertainty and local retailers need to really tap into that now and find ways to maintain a loyal shopping base as we eventually move out of the pandemic.
Local retailers need to adapt to meet customer needs
James says:
"Customers are as loyal to businesses and stores as they are to brands. Tapping into this has always been paramount to success, the current conditions have allowed these retailers to showcase their offer.
In order to maximize this during this relative window of opportunity, these retailers shouldn't always need to replicate what larger retailers do, as it's their differences that often set them apart.
Increasingly people are willing to pay a little more to support local stores. I believe this trend will continue in a post-COVID19
What does the future hold for the high street?
If independent businesses can adapt to changing shopping habits and demands then the high street may well survive, albeit in a different form to what we are all use to.
As James says:
"Whilst it is true that consumers will be ready to spend, it is worth remembering the psychological impact that months of lockdown will have had on shopping and leisure habits. People may be more sceptical about spending time in busy enclosed spaces like shopping centres, but local high streets may be a more attractive proposition."
High streets may become central to the community again
"As many large retail outlets close we may see a continuation of the pattern over recent years of vacant properties switching to residential use.
Certainly, there has been an increase in applications for bridging loans for those wanting to convert shops and offices into residential units. With the changes to the
For this transition to work highstreets need to find ways to reinvent themselves to remain a relevant space at the heart of our communities."
[ENDS]
Notes to editors
Survey 1,000 Brits were surveyed through The Leadership Factor
Full report https://www.kisbridgingloans.co.uk/finance-news/61-percent-o...
Data shop closures https://www.pwc.co.uk/press-room/press-releases/store-closur...
Data online sales https://www.ons.gov.uk/businessindustryandtrade/retailindust...
Data
Data
Data on public view of Government's handling of pandemic
https://www.mirror.co.uk/news/politics/boris-johnsons-govern...
Data on
https://www.theguardian.com/technology/2020/sep/08/amazon-uk...
Data on
https://www.theguardian.com/technology/2020/oct/29/amazon-pr...
https://www.retailresearch.org/retail-crisis.html
Data
Data retail to residential conversions
https://www.landlordtoday.co.uk/breaking-news/2020/8/retail-...
Contact
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