Returning to the shops

We’re returning to the shops, and to pubs and restaurants

The increase in retail sales exceeded expectations, and are 10% higher than before the pandemic.

Clothing and fuel sales have seen particular increases. Clothing sales seem to have been boosted by opportunities to socialise, travel and attend outdoor events, fuel sales through people feeling more comfortable about travelling outside their area. Household goods have also seen increased sales.

The fact that some people have saved money on commuting costs in particular has fed into the sales boom, as has pent up demand for goods that might otherwise have been bought earlier. In addition the vaccination programme has left many people feeling more confident about visiting shops.

Online sales have held up and are still 50% higher than before the pandemic.

Does this mean that recovery is likely?

Many High Street stores still face substantial problems. Many have rent arrears to clear and the ending of full business rate relief will increase costs. If pent up demand is a major factor, that might tail off over time.

M&S has reported a £200m loss, despite a small profit pre tax and before profit adjustments.

Many of the landlords and shopping centre owners have suffered losses – British Land for example has lost £1bn for the second year running.

Footfall

Footfall (the number of people visiting shopping areas) has increased, although it is still almost 30% lower than for the same period in 2019.

The increase in footfall varies from place to place.

Overall it has increased most on the High Street, only slightly in shopping centres and has fallen in retail parks. Big cities have seen a more improved footfall than market towns, many of which have seen falls in the number of visitors.

The increase in footfall has been uneven across the country – it has been highest in the North West, followed by Yorkshire and the Humber and the East Midlands. Footfall has been lowest in London, blamed on a lack of tourists and commuters. Despite this, Central London has fared better than other London shopping areas.

The reopening of pubs and restaurants is seen as a driving factor in the increased footfall – the increase has been highest after 5pm!

Don’t forget: Fathers Day is Sunday 20th June

Pong Cheese have some interesting selections at the moment including “The Wallace and Gromit Cracking Cheese Set” and the “Best Dad in the World Box”

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