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Summary
- The high streets and shopping centres in the UK are under immense pressure due to inactivity, and most businesses are seeking consolidation.
- The retail space has further been dented by the changed shopping habits during the pandemic induced lockdowns.
The lockdown 3.0 has led to a substantial decline of 76.9 per cent in the number of store visitors during January in contrast to the previous lockdown in the country. According to the UK’s apex trade association British Retail Consortium (BRC) and retail analytics firm ShopperTrak, Wales was among the worst hit witnessing a decline of 79.1 per cent year-on-year in consumers footfall. The number of customers visiting the high streets and shopping centres in the UK has gone down by 73.3 per cent and 78.2 per cent, respectively.
The third national lockdown seems to have weighed down heavily on the high-street retailers. With over a hundred thousand deaths due to coronavirus pandemic, a third lockdown was inevitable. Moreover, initial studies suggested that the new variant of coronavirus found in the UK is more contagious than its predecessor and experts fear that Covid-19 vaccine might be less effective against the mutated version of the virus.
Also read: What Does BRC And Shoppertrak Data Indicate About the Present Situation of UK Retailers?
Scotland and Northern Ireland fared better than Wales as they witnessed a less drastic drop of 72.5 per cent and 66.4 per cent in footfall respectively, according to the four-week data compiled in January.
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Despite the pandemic, retail parks were still doing well due to their layout. The design of retail parks supports social distancing measures, and people can easily pick their stuff that they ordered online. In January, the footfall in retail parks has gone down by nearly 41 per cent year-on-year.
The retail landscape has been significantly impacted by declining footfall and rising rents. The ailing sector looks up to the government for a potential bailout. In recent times, the battered sector has witnessed shortening of lease tenures and consolidation within the sector.
Online fashion retailer Boohoo Group (LON: BOO) has recently bought all the in-house brands of Debenhams. Notably, shares of Boohoo have delivered a positive price return of 8.84 per cent in the last twelve months.
Also read: Boohoo (LON:BOO) Takes Over Debenhams for £55 Million
UK’s leading fashion brands Topshop, and Miss Selfridge were bought by online fashion retailer Asos Plc (LON:ASC) for £330 million. Asos shares have delivered a double-digit price return of nearly 50 per cent in the last one year.
UK clothing retailer Next Plc (LON: NXT) has been successful in sailing through Covid-19 headwinds by devising the right strategy. The company has been focussing on home furnishings, loungewear, and children’s clothing. These line items have witnessed unprecedented demand during the first two lockdowns.
Shares of Next Plc have delivered a double-digit price return of 13.70 per cent in the past 52-week period.
