The pandemic has taken its toll on many high street businesses

The pandemic has taken its toll on many high street businesses

Coronavirus restrictions have been hard for many of us, but it could be said that high street businesses have been badly affected the most.

Doors had to be shut when shoppers and employees alike were told to stay at home, and for many businesses, the imposed lockdown was the final nail in the coffin after they had already struggled to stay open.

Many smaller stores have now closed down, but these businesses weren’t the only ones badly affected by the pandemic. Many of our larger retail chains have also suffered, and some of them have now gone into administration.

Shirt and tie retailer T M Lewin will now be absent from our high streets, as all of its UK stores have been shut down. Shoppers will still be able to buy from the brand online, but their return to the high street seems unlikely.

Historic Birmingham retailer Lee Longlands has also gone into administration, and the UK arm of luxury lingerie retailer Victoria’s Secret has also gone under. Cath Kidston, another famous fashion brand, will no longer be a presence on the high street, although its online presence will continue.

Debenhams has closed many of its UK stores, and they are currently in restructuring deals with landlords to keep their other stores open.

Bright House stores are unlikely to reopen in the near future, so guidance to customers have been sent out.

And many other large stores are now facing closure or moving online, although some are starting to reopen despite the financial effects of the lockdown period.

How will high street businesses fare now that lockdown is over?

In recent weeks, lockdown restrictions have been eased. Many stores have been able to reopen, but they have been forced to adapt due to the need for social distancing.

For those stores where social distancing is possible, it might be that their future on the high street is secured for now. But what about those smaller stores where social distancing isn’t possible? Will they be forced to shut down as customers head to larger stores and supermarkets for their spending needs?

We also have the problem of ‘social distancing renegades,’ those people who refuse to follow regulations. A BBC report highlighted events at The Range, where employees were terrified of catching the Coronavirus when those less-than-respectful customers purposefully ignored the safety measures that had been put in place. It’s a challenging situation and one that is worrying for staff and customers alike. Lockdown might be over, but with the behaviour of some people, it might be that another lockdown is imposed if the virus levels spike again.

Store owners have been told that they can refuse entry to shoppers who refuse to wear masks, but this is problematic. Enforcing these new rules might prove difficult for some business owners and their employees, and some are scared of the violent confrontations that could take place. These have already happened between customers and employees within certain parts of the world. Some of these confrontations were highlighted in a recent article at Wired, and in an interview, one store owner said of its employees: “It’s a police matter to enforce rather than for them to get involved in any potential public disturbances.”

There are still tough times ahead, and we are not out of the water ahead. The pandemic is far from over, and businesses are still struggling to cope with the new situation they have found themselves in.

Survival on the high street

Many businesses have opened their days again, but will they be able to claw back the finances they lost during lockdown? Many larger stores are now offering clearance sales in an effort to win customers back, but for smaller stores, this might not be possible, especially if they don’t have the finances to cope with any losses.

Still, the high street has been struggling for years, way before the pandemic hit. Thanks to the rise in online shopping, many smaller stores were forced to close anyway. Then there are the supermarkets that continue to beat small business owners into submission, offering a one-stop-shop for nearly everything. High street store owners are well used to David and Goliath situations, so even though some have been forced into defeat, there will be those who continue to battle valiantly.

To survive on the high street, a number of things need to happen.

For one, store owners need to attract people into their premises. On a surface level, they can do this with digital signage and more attractive window displays. First impressions are everything, after all, and while there are still shoppers on the high street, every effort must be made by store owners to lure customers inside.

Store owners should also offer customers unique experiences that can’t be replicated online. These have been highlighted in an article by StoreFront, who have highlighted case studies that prove experiential retail is the future. Using new advancements in technology, stores can now obtain visibility with immersive displays and features that offer customers a one-of-a-kind experience.

Of course, not every retailer has the finances or the building size to create some of those experiences that larger retailers are depending on, but they can provide hands-on product tutorials, creative workshops, and perhaps rest and eating areas too as a means of improving the customer experience.

Now is also the time to learn a few financial lessons, especially where saving money is concerned. With the threat of a second wave of the virus, now is as good a time as any to put money away into an emergency fund, as it might be that business owners can survive another lockdown period should it come to pass.

Finally

A 2020 High Street Report detailed the predicted losses faced on the high street. Experts have suggested there will be 20,620 retail store closures by the end of 2020, with over 235,700 job losses. Many firms have stated that COVID-19 was the last straw for them. These are sad times indeed, and it just goes to show how badly high street businesses have been affected by the pandemic that has swept the world.

Will the high street recover? With strategies in place, maybe, but we will just have to wait and see. Be sure to do your bit by shopping offline instead of online the next time you want to make a purchase.

 

15/09/2020