Expect retail casualties from new lockdown, says city CEO
SOME city centre businesses including major national retail chains will not survive the latest lockdown, says the chief executive of Plymouth City Centre company.
Steve Hughes said businesses already teetering on the edge after months of uncertainty and two previous lockdowns may not outlive the latest restrictions.
He was speaking as stationery and greeting card chain Paperchase, which has a large outlet in Plymouth’s Drake Circus Shopping Centre, warned it was on the verge of collapsing into administration.
And Mr Hughes said more could follow, although he said that if retailers can weather the current Covid-19 lockdown Plymouth’s city centre is well poised to bounce back.
But there is an immediate problem from what Mr Hughes described as a “hammer blow” to retail and hospitality businesses.
He said: “It’s too early to say how the latest lockdown will impact on businesses exactly, but undoubtedly some will not make it.
“Without further help, big chains and independents are at threat, and particularly the hospitality sector, because Covid restrictions mean they can’t trade successfully.
“So from the point of view of Plymouth city centre, then undoubtedly there will be more casualties.
“Some will be among the big chains which can no longer afford to have the overheads of bricks and mortar premises.”
Since the coronavirus pandemic arrived in the UK, Plymouth city centre has lost the likes of Brighthouse, Laura Ashley, Carphone Warehouse, Cath Kidston, Cafe Thorntons and Edinburgh Woollen Mill, with Debenhams and Peacocks staging closing down sales.
Prime Minister Boris Johnson pitched England into further lockdown misery on January 4 as coronavirus cases threatened to overwhelm the NHS.
All non-essential retail must now stay closed and hospitality businesses can only offer takeaways, causing more problems for city centre businesses in Plymouth and elsewhere.
Chancellor Rishi Sunak moved swiftly to arrange for £4.6billion to be handed out in grants of between £4,000 and £9,000 to retail and hospitality businesses, with a further £594million going to local authorities to distribute to other firms that can’t access this help.
But Mr Hughes said that while welcome, this lifeline is not sufficient, and businesses need a longterm plan and continuation of VAT and business rates holidays, and, ultimately, a reform of the business rates system.
And he prays for an end to lockdowns so that an events programme to jump-start the city centre’s economy can proceed in 2021.
He said: “The announcement of grant support, from the Chancellor, is very welcome, but it is a shortterm fix and for many this will not be enough.
“For some businesses this will be very welcome, but for others £4,000 won’t get them through this, especially if they find that in April they have to pay rates again.
“This Government needs to set out a clear long-term plan so businesses know where they are, and this continual open-close-open-close lack of certainty is killing them.
“They need to extend (support) for the whole year, but ultimately the business rates system needs to be reformed.”
Mr Hughes stressed that 15,000 jobs depend on the retail and hospitality sector in Plymouth’s city centre and waterfront and said: “That’s a huge part of Plymouth’s economy.
So he urged the public to support Plymouth businesses that can operate online or offer click-and-collect services or deliveries or takeaways, and use the Shop4Plymouth website too.
And he said that if they can survive Lockdown 3.0 then Plymouth could bounce back, with businesses – such as the recently arrived Hugo Boss and German Doner Kebab – keen to invest, and a programme of infrastructure improvements already under way.
And he hopes a programme of planned city centre events can still take place from Easter onwards “depending on health and safety advice”.
He said: “Once we can reopen I’m confident Plymouth city centre will be in a strong position and recover, with a huge programme of investment on the way and businesses still looking to invest in retail and hospitality outlets.
“I just sincerely hope this is the last lockdown.”