Local retailers benefit from Eat Out to Help Out scheme
22 million people, representing 40.6% of UK consumers, have used or plan to use the government’s Eat Out to Help Out scheme, according to research by GlobalData.
The company surveyed 2,000 Brits and found that this is being driven by under 35s.
At the same time, however, UK offline non-food spend is set to plummet 25.2% versus last year, heavily impacted by stores being shuttered for three months during the coronavirus outbreak, alongside the additional safety measures required when visiting shops. Spend via the online channel, meanwhile, will rise by 13.4%.
Retailers with stores in neighbourhood locations and on high streets will see the biggest impact from the Eat Out to Help Out scheme, with 60.6% and 45.2% of users, respectively, planning to visit cafes or restaurants in these spots.
78.6% of UK consumers remain concerned about Covid-19 and, as a result, are reluctant to travel unnecessarily, meaning that the likes of out-of-town shopping centres will see less impact on footfall and spend.
Sofie Willmott, Retail Analyst at GlobalData, comments: “Many British consumers are keen regain a sense of normality by utilising the Eat Out to Help Out scheme, while obtaining value for money and simultaneously helping businesses to get back on their feet.”
The pandemic has accelerated changes that were already happening in the retail market with shoppers veering towards digital shopping and away from physical stores, evident from recent announcements by key players Next and Asos, she adds.
“Retailers including M&S and John Lewis & Partners have rapidly responded with plans to close stores permanently and make redundancies, as the major shift towards online caused by Covid-19 will not be reversed,” Willmott concludes.
