High Street braced as shoppers stay home

THE High Street is bracing for a slump as shoppers stay at home amid the coronavirus outbreak.

An epidemic is now ‘highly likely’, Government scientists say, raising the spectre that shoppers will avoid Britain’s already fragile shops. Analysts said the outbreak was yet another ‘kick in the teeth’ for the sector after storms battered sales last month.

As the John Lewis Partnership paid its lowest staff bonus since 1953, after profits fell 23pc, Julie Palmer, partner at Begbies Traynor, said: ‘John Lewis’s fall from grace has been spectacular.

‘Once the envy of the industry, the company has suffered dismal trading performances over the past few years, demonstrating that the retail race is so fast that even those seemingly on an unstoppable march one year can be vulnerable the next.’

Figures from accountants BDO today show sales last month were 0.9pc lower than in February last year and online sales also recorded their second-worst monthly result since 2010.

Shops, bars and restaurants face an uphill battle with pressure on sales and rising costs putting weaker firms at risk of going bust. Sophie Michael, BDO head of retail and wholesale, said: ‘While some of last year’s uncertainty dissipates, it seems it’s being replaced with increased volatility.’

Roger Whiteside, chief executive of food chain Greggs, said: ‘The only scenario we’re envisaging is a slump in demand as people stay at home and stop going to work.’

Shore Capital analyst Clive Black said: ‘We absolutely expect coronavirus to spread. I think the warnings are going to condition people’s behaviour.

‘The outlook looked brighter with Brexit out of the way and a rise of consumer confidence – this is a real kick in the teeth.’

Clothes, toys and general merchandise sellers are expected to see costs rise as supply chains, manufacturing and shipping are disrupted.