We need to see action or the future will be bleak
These figures imply three areas are at immediate risk of economic harm. These include tourist destinations, such as Oban or Aviemore, which are heavily dependent on visitors, especially for discretionary purchases. We also know city centres have seen enormous falls in footfall. With high street stores and offices closed, there are few reasons to visit. Long term we’d expect there to be some recovery in these places – as customers will still want to visit those vibrant and attractive hubs – but the right measures will be needed to encourage shoppers and visitors to return there.
Finally, we’d worry places which are more economically vulnerable are likely to see depressed spending from nervous shoppers. The last two months have seen seismic changes affecting customers and their spending patterns. Retail has been hammered by coronavirus. We have seen the worst overall sales performance ever, the worst non-food sales ever and the worst fashion and footwear sales ever. Many businesses are closed, whilst those which remain trading currently are doing so in incredibly hard circumstances.
Our data also shows sales have fallen significantly, albeit with a significant shift to digital channels.
Rules keeping shops closed have driven both retailers and shoppers online, which may mark the beginning of a rapid acceleration of retail transformation.
In all the places highlighted in this study, the risk is that anxious consumers limiting spending could start a vicious cycle. That can then increase the risk of lost jobs, which worsens the situation for the whole supply chain. However, none of this is inevitable. Setting a clear timetable for reopening, putting in place plans for shopping, and using short-term stimulus can all restore consumer confidence. Doing so now might prevent a few difficult months turning into a very challenging future.