UK retailers ramp up online operations but warn of further store closures
UK retailers are ramping up their e-commerce operations to meet the increasing demand for online shopping during the coronavirus pandemic, but warned of further physical store closures.
The latest research showed that 15 per cent of UK retailers have created roles specifically to cater to the boom in digital sales and to boost online capacity,
More than one in four retail industry leaders believe the pandemic has accelerated a “technological revolution” in the industry, according to Barclays Corporate Banking.
However thousands of high street jobs have been lost since the pandemic hit the UK in March as consumers migrate to online shopping.
In total 15 per cent of retail businesses plan to close physical stores near office areas over the next year.
Health and beauty retailers, supermarkets and food and drink firms are the most likely to reduce their estates.
One in five respondents to the survey of 300 UK retail executives said the future of bricks and mortar retail is in local high streets rather than city centres as homeworking becomes more common.
Barclays Corporate Banking head of retail and wholesale Karen Johnson said: “The last few months have undoubtedly been challenging for the sector, and we are hearing frequent news of jobs being put at risk.
“Against that backdrop, however, e-commerce and digital sales have demonstrated significant improvement and have helped to maintain year-on-year growth for many businesses.”
Research published this morning showed that a third of UK retailers have upgraded their websites during the coronavirus lockdown, while 32 per cent have begun to accept new payment methods.
Meanwhile one in four have started to use data analytics for the first time.
Nearly a quarter of UK retailers have begun offering click and collect options following an increase in demand during the Covid-19 crisis.
Home improvement retailers were the most likely to have introduced this option as consumers turned to DIY during the lockdown.
DIY retailers were also the most confident of growth in the short term, with 80 per cent saying they expect to grow revenue over the next three months compared to an industry average of 60 per cent.