Covid-19 ‘doughnut effect’ creates retail opportunities in outer London, experts say
Outer London boroughs have recovered faster from the coronavirus restrictions than the city centre, creating a “doughnut effect”, which could provide new opportunities for retailers and landlords, experts have said.
Research by estate agent Savills showed that in the six weeks to 23 October footfall in the City and Westminster was down 72 per cent and 62 per cent due to the impact of home-working and the lack of international tourism.
However areas on the outskirts of the capital have fared better due to the remote working boom, as people spend more time in their local neighbourhoods.
Footfall in Waltham Forest is only down 17 per cent compared to last year, while Sutton and Ealing are down 19 per cent and 20 per cent, according to analysis of Google mobility data.
Savills said the trend could present opportunities for retailers that had previously not considered moving into the suburbs, as well as supporting local independent businesses.
The trend could be permanent as people switch to flexible working more frequently, although experts said that central London remains “robust” in the long-term.
“Retailers that perhaps weren’t looking at outer London are now looking at expanding. “People have rediscovered their local neighbourhoods,” Savills retail research director Josh Arnold told Morning Wire
“Some people are looking at working from home more frequently and this will continue supporting outer London boroughs.”
However, he added: “The long-term fundamentals of central London are still robust, tourism will return and office workers will return.”