More retail job losses forecast unless office workers return, industry warns
More store closures and retail job losses are expected unless office workers return and consumers are encouraged to visit city centres, a retail industry body warned this morning.
Despite an uptick in footfall in the final week of the month due to back to school shopping and the final days of the Eat Out to Help Out Scheme, UK footfall plunged 34.8 per cent in August.
The number of shoppers visiting UK retail destinations last month only jumped 7.3 percentage points compared to July as many office workers continued to stay at home.
The slow recovery in retail footfall in city centres is having a “devastating effect on the local economies in these areas”, the British Retail Consortium (BRC) said.
“While many businesses have been investing in making workplaces safer, we are unlikely to see significant growth in footfall while government advice remains to ‘work from home if you can.’,” BRC chief executive Helen Dickinson said.
“Unless this changes, more should be done to encourage people to travel and reassure them that public transport is safe.
“Government should also recognise that, while footfall is so low, many businesses will not be able to manage their fixed costs – rent & business rates in particular – and unnecessary job losses and store closures will follow.”
Thousands of retail jobs have already been lost as high street names, including Boots, John Lewis and slashed numbers
High streets were the worst performing location last month, with footfall dropping 41.7 per cent year on year, while shopping centre footfall declined 37.4 per cent.
Retail park footfall was down 11.1 per cent compared to last year. They continued to be shielded from the impact of the coronavirus pandemic due to a higher proportion of supermarkets, larger stores and open spaces.
“Footfall in the UK continued to improve throughout August, with a marked upturn in the final week,” Andy Sumpter, Shoppertrak retail consultant, added.
“This can in part be attributed to the last days of the “Eat Out to Help Out” campaign, and Back To School shopping.
“Retail parks continued to lead the way for recovery, with shopping centres catching up, while high streets are still lagging. With many people still working from home, high streets in many major cities desperately await the return of tourist and office commuter footfall.”