UK retailers under immense pressure as coronavirus challenges persist

UK footfall decreased by 81.6% in May, due to the coronavirus lockdown, according to research from BRC and ShopperTrak. 

This was a shallower decline than that seen in April, as more categories of shops,  including garden centres and homeware ventures, could reopen.

Footfall on high streets was down by 77.8% year-on-year, retail parks by 55% and shopping centres by 84.9%. As Helen Dickinson, Chief Executive at British Retail Consortium, observes, other countries that have lifted their lockdown have seen footfall rise by around 15-25 percentage points in the initial weeks, and many retailers will hope for a similar, if not larger rise, as England follows suit this week.

“Retailers have been under immense pressure for the past three months but the reopening of non-essential shops from today is unlikely to deliver immediate relief. A mix of low consumer confidence and limits on the number of people able to enter stores mean that many shops will continue to suffer lower footfall – and lower sales – for some time to come,” she says.

“The government should consider options to stimulate demand, such as a short-term reduction in VAT or a temporary income tax cut for lower-income workers. As they return to serving the country, there is still a risk that many physical shops could end up closing their doors again – only this time, permanently.”

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