The retail industry continues to bear the brunt of the ongoing pandemic, with a recent report painting a bleak picture of the future. The study, conducted by the Local Data Company for PwC, indicates that the number of store closures in the UK is expected to rise in the coming months, following a record number of closures last year. Over 17,500 chain stores and other retail venues permanently closed their doors, averaging a staggering 48 closures a day across England, Wales, and Scotland.
The impact of the Covid-19 crisis on the retail sector has been devastating, particularly for fashion retailers, with more than 1,100 disappearing in 2020 alone. Shopping centers, once bustling hubs of activity, have also experienced a significant number of closures, with London witnessing a record increase in net closures. Major cities like Birmingham, Bristol, Leeds, and Newcastle have not been spared either, as chain stores continue to disappear from their high streets.
The closure figures presented in the report do not even include independent retail closures, painting an even grimmer picture of the industry’s current state. Moreover, the full extent of the pandemic’s impact is yet to be realized, as many temporarily closed stores are unlikely to return post-lockdown. Lisa Hooker, head of consumer markets at PwC, warns that numerous company restructures and administrations have not been accounted for, including closures of department stores, fashion retailers, and hospitality operators that will undoubtedly leave noticeable gaps in prominent city center locations.
However, amidst the closures and uncertainties, there may be opportunities for new players to emerge in the retail industry. Hooker suggests that as we navigate through the aftermath of the pandemic, there will be openings for operators who can strategically position themselves in the right locations at the right time to thrive. Just as discounters and food service chains rose to prominence following the global financial crisis, there lies the potential for new retailers to enter the market and prosper.
As the retail landscape continues to evolve, consumer preferences shift, and demand patterns change, adaptability and innovation will be key for businesses looking to navigate the post-pandemic world successfully. While challenges persist, opportunities for growth and success remain for those willing to embrace change and explore new avenues.
For more information on the impact of the pandemic on the retail industry, please visit PwC UK. To explore strategies for thriving in the evolving retail landscape, check out Retail Dive.
