Survival in question for 50% of Exeter businesses

MORE than half of Exeter’s businesses will be fighting to survive the next 12 months.

A survey from the Exeter Chamber of Commerce found that 57 per cent of respondents are facing a severe impact from the current restrictions, more than those surveyed in November.

Decreased bookings, sales and demand for services (74%), event cancellation (47%), cashflow issues (41.9%) and travel restrictions to visit customers or suppliers (38%) were the main causes of impact.

And worryingly, 39% indicated that their business can continue to operate for no more than six months, with 19% indicating they only have between 6-12 months as a result of the impact of lockdown.

Chamber Chair, Clodagh Murphy said: “Businesses are continuing to see severe impacts from the series of lockdowns and trading restrictions over the last year.

“Owners are fatigued from continuous re-planning and need to see a roadmap from government, in line with the vaccine programme, outlining their plans to lift restrictions and what support will be available to business owners over that period. This is vital to save otherwise viable businesses from failure.

“Locally, we urge local authorities to issue grants quickly and efficiently. The Chamber promises the business community that it will continue to press for support on their behalf and act as a conduit to get info to businesses as a matter of urgency.”

Figures presented to Exeter City Council’s Strategic Scrutiny Committee on Thursday also showed how trends have changed in the city centre and on businesses as a result of the lockdowns over the past year.

Victoria Hatfield, Growth & Commercialisation Manager at Exeter City Council , in her report, outlined that online sales now account for 31.4% of sales compared 20.1% back in February, and online sales are 75% higher than they were last year.

Household goods sales were up +15.2% year on year reflecting rising DIY sales (now up +46%) as households made use of click and collect and completed home improvements during the lockdown period, but clothing & Footwear store sales fell -19% in the month (with sales moving online), and fuel sales also fell by -16.6% during the month.

Her report added: “Overall, car park ticket sales are still down approximately 27% comparing 2020 to 2019, which is having a dramatic effect on income levels.

“The large number of people working from home is having a negative impact on car park income. The trend of working from home is likely to continue for the foreseeable future, in line with government guidance, and from discussions with the Chamber of Commerce and direct with businesses, they are negotiating lease agreements to reduce space rented in the city centre, which will have a longer term impact on the city centre.

“In line with the number of car park tickets sold, footfall within the city centre reduces and increase in line with national restrictions being enforced and lifted.

“The latest Business Impact of Coronavirus survey... reveals that around more than one-third (36%) of employees are working remotely instead of their normal place of work. This figure is much higher in Exeter, at 65%.”