Retailers in the UK are currently battling a series of obstacles, with new data highlighting a significant decline in shopper numbers throughout the month of December. According to the latest figures from the British Retail Consortium/ShopperTrak survey, footfall across all UK destinations plummeted by 46.1% compared to the previous year. High street stores were the worst affected, experiencing a staggering 49.5% decrease in visitors, closely followed by shopping centers with a 47.3% decline. Retail parks, although faring slightly better, still saw a notable 17.3% drop in footfall.
The capital city, London, bore the brunt of the decline, with a massive 58% decrease in footfall attributed to the third lockdown in England. Regions such as Wales and the south-east of England were also hit hard, while the north-west experienced the smallest decline at 36%. Overall, 2020 saw a 43% year-on-year decrease in shopper numbers across high streets, shopping centers, and retail parks, with the final quarter of the year alone witnessing a nearly 50% drop in footfall.
In light of these alarming statistics, the British Retail Consortium is urgently appealing for support from the government. Chief Executive Helen Dickinson has called for an extension of the property tax holiday for retailers, especially as lockdown restrictions on non-essential businesses are projected to continue well into February. Dickinson stresses the crucial need for financial assistance to aid businesses that have borne the brunt of the pandemic’s impact.
Sainsbury’s CEO, Simon Roberts, has also joined the chorus of voices advocating for reform of the business rates system. Roberts argues that the current crisis has illuminated the necessity for a comprehensive review of business rates that align with the realities of the present retail landscape. He is pushing for reforms that accurately reflect the challenges faced by retailers in the wake of Covid-19.
As retailers in the UK strive to navigate these turbulent times, it is evident that government intervention will play a pivotal role in safeguarding the survival of businesses within the retail sector. With the industry grappling with unprecedented challenges, decisive governmental action is imperative to prevent further closures and job losses. By providing the necessary support, retailers can weather the storm and emerge resilient on the other side.
For more information on the impact of Covid-19 on the retail sector, visit BBC News – Business and Retail Gazette.
