UK retailers look local in a post-lockdown world as home working continues

17,000 local high street stores could open in the next 12 months as British shoppers adapt to a post-lockdown world by looking local, according to research from Barclays Corporate Banking.

2,005 people were surveyed for this.

68% have felt safe, or very safe, to return to the high street. 40% are planning on stepping up their in-store shopping over the coming year and 41% say that it is their favourite way to buy things.

However, Barclays Corporate Banking’s research shows that home and hybrid working patterns will persist into 2022 for 44% of workers, with 16% expecting to work entirely from home and 28% anticipating a part-home, part-office model.

A quarter of consumers now say that the best way a retailer can appeal to them is to open stores in their local area.

Barclays’ research, based on a survey of 306 senior retail managers, reveals that 18% of retail businesses with 10 or more employees are eyeing community store openings, with each of them looking at five new premises on average.

Cumulatively, there is therefore potential for up to 17,000 new local stores across the UK, it reckons, given estimates that there are 310,000 retail businesses in the UK.

Karen Johnson, Head of Retail and Wholesale for Barclays Corporate Banking, says: “Our report shows how innovative UK retail businesses are looking to build back better to meet the challenges of a reshaped and revitalised retail landscape.”

“E-commerce has been the undisputed winner of the pandemic but not far behind are community high streets, as shoppers seek to ‘look local’ and support the stores on their doorstep.”

“With the continuation of home working, this shows no sign of slowing down, and retailers are now looking at evaluating their store estates to meet local demand.”

Other findings from the research include: three in ten retailers are looking to entice more people back to physical stores by laying on experiences such as concerts and exhibitions.

Two fifths report an increase in demand for sustainable products with a reduced environmental impact. Whilst 40% now employ data led marketing to acquire more customers.

Johnson concludes: “The contemporary customer expects retailers to serve their needs: for speed, convenience, locality and, increasingly among younger demographics, for a sustainable ethos.”

“The ability to deliver on these expectations with minimal friction – often by leveraging data and technology – will be pivotal in deciding who will win, and retain, customers in the future.”

“I am consistently impressed at how innovative, agile businesses are adapting their strategies to survive and thrive across the whole shopping journey.”