According to new statistics from the Office for National Statistics (ONS), over half of UK employees have started returning to their workplaces, raising hopes for the struggling retail sector in city centers. This is the first time since last June that more than 50% of workers have made their way to work, indicating a potential boost in retail sales.
The ONS revealed that in the week ending March 14, 53% of workers traveled to their workplace at least once, compared to 48% in the previous week. The reopening of schools in Britain has been the significant catalyst for this increase. The return of students to school has already had a positive impact on sales in categories such as footwear, and experts predict that this trend will continue as adults become more active outside their homes. The revival of workers returning to their offices is also expected to benefit formal clothing categories.
Despite this encouraging development, city and town center retailers will face substantial challenges due to the ongoing popularity of remote work. Many companies have announced extended periods of remote work for their employees, and hybrid models involving a combination of office and remote work are becoming the norm. Nevertheless, developers still anticipate a high demand for office space, especially in flagship locations. Retailers like John Lewis and M&S have already submitted plans to convert upper floors of their Oxford Street flagship stores into office spaces. Furthermore, the increasing availability of vacant department stores presents an opportunity for creating additional office space in towns across the country. The rise of casual co-working spaces is also expected to contribute to this trend.
The conversion of retail spaces into office buildings is likely to attract more people to town and city centers, which will benefit the retailers located there. This comes at a critical time for the retail sector, which is desperately in need of a boost. Recent data from Springboard highlights that footfall in central London is still down approximately 80% compared to the previous year, with regional cities, market towns, and coastal towns also experiencing significant declines. However, there are signs of improvement as footfall has been gradually increasing on a weekly basis. The return of office workers is expected to play a vital role in the recovery of the retail sector and help improve year-on-year footfall figures.
In summary, the increasing number of workers returning to their workplaces brings hope for the struggling city and town center retail sector. Though challenges persist due to the popularity of remote work, the demand for office space and the conversion of vacant retail spaces present opportunities for revitalizing these areas. The return of office workers will not only benefit retailers but also contribute to the overall recovery of city and town centers.
Useful links:
– BBC: UK workers begin to return to their offices
– Statista: Impact of the coronavirus pandemic on town centre footfall in the UK
