Government must act now as coronavirus hit West End retailers suffer

Without further government action, retailers in London’s West End are facing £5 billion sales losses and 50,000 job cuts.

That’s according to New West End Company, which represents 600 businesses across Oxford Street, Bond Street, Regent Street and Mayfair. Its research shows that in the first full month of non-essential retail reopening, the West End welcomed 5.1 million visitors since 15th June, down 73% year-on-year.

While footfall has been rising since the aforementioned reopening, up by 5% since retailers returned to action, London is still faring worse than the rest of the UK. Springboard’s latest figures reveal that footfall levels in UK high streets are down 57.2% compared with June 2019; 19% higher than central London.

New West End Company argues that city centres are being held back by a series of restrictions, including uncertainty surrounding returning to work and the use of public transport. Clarity from the government, in line with local authorities, is needed to instil consumer confidence over the coming weeks and ensure that retail and hospitality businesses run viably throughout the summer.

70% of all international visitors to the UK, meanwhile, are from EU member states but they are currently excluded from its tax-free shopping scheme. Reform could add £1.4 billion in retail sales annually and give an overall benefit of £2.1 billion to the UK economy, New West End Company claims.

Jace Tyrrell, Chief Executive at New West End Company, comments: “With no international visitors and mixed messaging surrounding the safety of returning to work and using public transport, we urgently seek clarity of government messaging for our businesses to survive.”

“With the UK-EU trade deal deadline also looming, we need to ensure that destinations that rely on international visitors, which have been so hard hit by the pandemic, are accounted for in longer-term recovery plans including levelling up on tax-free shopping with the EU.”

Ian Earnshaw, Commercial Director at Mulberry, says: “With the decline in sales and footfall bought on by Covid-19, the retail and leisure sector urgently need new measures to ensure that businesses in London and the wider UK can operate on a level playing field as they recover from the implications of the pandemic.”

“The tax-free shopping reform is a low-cost and effective change that will enable UK retail businesses and destinations to regain a competitive advantage against other retail centres and compete on the global stage.”