- Advertisement -
HomeUK NewsWhat Will The High Street Look Like After Lockdown As Retailers Feel...

What Will The High Street Look Like After Lockdown As Retailers Feel The Strain

It comes as no surprise that the UK high street has already seen its fair share of victims over the past few weeks. With brands such as Warehouse, Laura Ashley and Oasis just a few of the names hitting the headlines of late. It might only be a matter of time before other large retailers start feeling the strain. 

The UK high street has already been struggling to come back from some of the worst sales figures on record in 2019. Online shopping failed to offset the downturn for many, and the pandemic has only made things worse. 

Figures from the Centre for Retail Research (CRR) has estimated that we could see over 20,000 shop closures this year – up from 16,000 in 2019. This also will mean job losses of approximately 250,000 based on three-month lockdown analysis. 

Prof Joshua Bamfield Centre for Retail Research
Prof Joshua Bamfield Centre for Retail Research Director

Prof Joshua Bamfield, the CRR’s director, said the coronavirus was a “hammer blow” for retailers. “We expect more companies to go into administration followed by the current pattern of an acquirer purchasing a small number of well-performing stores plus the brand names and the rest of the stores to remain unsold.”

Some of the largest retailers affected by the lockdown have not been able to diversify. For example, Primark is a popular fashion store among consumers. Still, with brick and mortar stores the only purchasing option, it has reported sales dropping from £650m to zero in a month. 

Owner George Weston said “Much as I would love to be allowed to reopen Primark stores across the UK, continental Europe and the USA soon because lockdown has so harmed our business and our supply chains, I know that we must not do so until we have suppressed this disease.”

George Weston, Primark
Primark owner, George Weston

“When we are allowed to reopen we must make our Primark stores safe for our staff and our customers, even if that means ensuring fewer people are shopping at any one time and so accepting lower sales at least until the remaining risk is minimal.”

“In time we can rebuild the profits. We can’t replace the people we lose.”

New measures to protect the UK high street

This week the government set out plans to protect the high street as many retailers are suffering at the hands of high rents and no income. Temporary measures will be put in place during the pandemic to prevent aggressive rent collection during this period. 

To stop unfair practices, the government has stated they will temporarily ban the use of statutory demands and winding up petitions until 30 June 2020, alongside several other measures. 

Business Secretary Alok Sharma
Business Secretary, Alok Sharma

Business Secretary Alok Sharma said: “In this exceptional time for the UK, it is vital that we ensure businesses are kept afloat so that they can continue to provide the jobs our economy needs beyond the coronavirus pandemic.

Helen Dickinson OBE, chief executive of the British Retail Consortium, thanked Alok Sharma for this swift action and welcomed this update. She went on to say; “this will give retailers some vital relief and help safeguard millions of jobs all across the country. We look forward to the finer details. However, it is clear the government is listening and willing to act.” 

Oscar Wyatt
Oscar Wyatt
I'm the editor at Breaking News Today and have been in the news and editing industry for years! Breaking News Today is a new outlet which we're building up and every single one of our readers means so much to us at this stage, we really appreciate your support!

Breaking News Today is a small UK business struggling to stay afloat during COVID lockdown. If you enjoyed this article or found it useful please subscribe to all of our social media outlets.

285,116FansLike
813FollowersFollow
764FollowersFollow
14SubscribersSubscribe
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Stay Connected

285,116FansLike
813FollowersFollow
764FollowersFollow
14SubscribersSubscribe

Must Read

- Advertisement -