Indie retailers remain resilient during coronavirus outbreak
Despite the Covid-19 pandemic sending shockwaves through the UK retail sector, there were still 31,405 openings of independent units in 2020, according to a report released by Local Data Company.
These were just outweighed by 32,847 closures and resulted in the independent market shrinking by -0.4% (-1,442 units).
However, this loss was minimal compared to the chain market which declined by -4.5%, equating to a loss of -9,877 units.
The loss in independent units in 2020 was slightly lower than the previous year, with a net change of -1,521 units (-0.5%) in 2019.
Both independent openings and closures decreased by 11% in 2020, as extended periods of lockdown suppressed market activity.
This indicates that government support schemes designed to stem the flow of retail and leisure closures during the pandemic were more effective for the independent sector than chains.
Many chain brands launched or accelerated store rationalisation programmes in 2020, whereas indies hunkered down and relied on support schemes such as furloughing staff and business rates relief to help them survive.
Through the pandemic, localisation has been a key trend. With consumers confined to their local area, many have chosen to support independent businesses.
Independent barber shops opened at pace, as has been the case since 2017, spurred on by the demand for haircuts in between long periods of lockdown.
New entrants on the top 10 opening list for 2020 were fast food takeaway, grocers, pizza takeaway and restaurants as demand for food delivery and grocery items skyrocketed.
Analysis on how many independent stores that opened in 2018 were still operational on 1st March 2021 demonstrates how fragile this market can be, with just 64% of those businesses still open, around two years on.
Lucy Stainton, Head of Retail and Strategic Partnerships at the Local Data Company, comments: “The volume of activity we are seeing across the independent sector could be cause for some optimism, as an increase in available retail units and more localised shopping habits create opportunities for those looking to open a business.”
“This could mark a first step towards more diverse and resilient high streets across the country."