‘Freedom Day,’ the anticipated date for the lifting of all Covid-related restrictions in England on July 19th, is fast approaching. However, government ministers are voicing concerns about the potential long-term impact on high streets and physical retail. With the possibility of fewer people returning to work in offices permanently, there may be a significant decline in footfall, which could have serious consequences for retailers and other businesses.
Luke Hall, the minister for regional growth and local government, describes the pandemic as the largest and most synchronized blow to the economy, social lives, and the high street in recent history. He suggests that achieving a full recovery may be an impossible task. The closure of approximately 5,000 stores since the start of the pandemic, along with the increased shift towards online shopping, has already had a detrimental effect on UK high streets. The latest BRC-LDC Vacancy Monitor reveals that more than one in seven stores on high streets were vacant by April.
The potential decrease in footfall and the rise in vacancy rates are major concerns that Hall raises while addressing MPs on the Communities select committee. He emphasizes the uncertainty surrounding whether footfall will ever return to pre-pandemic levels. Factors such as consumer confidence in shopping on the high street and the changing working habits of individuals will play crucial roles in determining the fate of physical retail. Paul Scully, the minister for small business, stresses the necessity of people returning to offices for the survival of high streets. He warns that failing to utilize the high street will lead to significant changes in towns and cities, urging the public to value and support local businesses.
The shift towards remote work has gained momentum during the pandemic, with many employers considering it as a more permanent arrangement. However, a hybrid model that combines working from home and the office is also being explored. Nevertheless, the long-lasting effects on high streets cannot be ignored, as footfall is directly linked to people commuting to workplaces.
As the UK eagerly awaits ‘Freedom Day,’ it is crucial to recognize the challenges that lie ahead for the high street. While the lifting of restrictions will bring a sense of normalcy, the impact of changed working habits and online shopping cannot be underestimated. To ensure the high street’s continued relevance in a post-pandemic world, the government, businesses, and consumers must collaborate to support its recovery and revival.
Useful links:
1. BRC-LDC Vacancy Monitor
2. BBC: “Covid: High streets will be ‘permanently damaged’ by pandemic”
