Now there is a glimmer of hope for city centre retail as office workers gradually begin to return to their workplaces. Throughout the pandemic, city centres have taken a significant hit as tourists have remained scarce and office workers have adopted remote working arrangements. However, recent signs suggest that office workers are slowly resuming semi-normal work patterns, which could potentially give city centre retail a much-needed boost.
Encouraging indicators began to emerge last week, signaling the revival of the daily commute. Springboard, a provider of retail performance insights, reported an almost 5% increase in office footfall between Tuesday and Thursday. Moreover, the London tube system experienced its busiest Monday morning since the pandemic’s onset, indicating that office workers now have more freedom to travel with their children back in school.
Additional evidence of the return of office workers can be seen in the surging demand for takeaway food and beverages. Pret a Manger, a prominent food-to-go chain, reported a 15% surge in trading last week, a clear indication of increased demand for sandwiches and coffee.
While the sales of tube tickets and sandwiches may not directly reflect retail store activity, it is important to remember that each tube traveler has the potential to become a shopper, and every sandwich sold could potentially lead to individuals visiting nearby retail stores such as Next, Boots, Reiss, H&M, or Superdrug. In fact, Pret a Manger’s CEO revealed that sales at city centre sandwich shops have reached 80% of pre-pandemic levels, and there are also signs of improving sales in airport shops, which bodes well for the tourism sector.
A recent report from Reuters further supports the notion of office workers gradually returning to their workplaces. It was revealed that between 20% and 50% of office workers in London’s financial district, known as the City, have already resumed work at least part-time. Additionally, observations made by our team in popular areas like the West End, Knightsbridge, Covent Garden, and the City indicate a notable increase in activity compared to July and August. Stores and restaurants are bustling, and there is a discernible presence of American and European visitors in certain locations.
Despite these positive developments, it is important to acknowledge that the road to recovery is still long. Tourist travel remains weak, and Springboard reported a decline in footfall to offices towards the end of last week. This decline may be attributed to the emergence of hybrid working patterns, where consumers continue to work from home part of the time. Consequently, the former busiest days for city centre stores, Thursdays and Fridays, may continue to face ongoing challenges in the foreseeable future.
In conclusion, the return of office workers to city centres brings a glimmer of hope for the struggling retail sector. While there are still obstacles to overcome, signs of increasing footfall and consumer activity are undoubtedly promising. City centre retailers must adapt to the evolving landscape and devise innovative strategies to attract and retain customers, leveraging the potential resurgence of office workers and tourism.
Useful links:
1. Reuters report on the impact of hybrid work on eating spots
2. Springboard’s data insights on footfall and retail performance
