retail
Data from the Springboard footfall monitor suggests that home working will have a permanent impact on urban retail if it continues at the same level. Springboard chief executive Diane Wehrle has said that footfall will likely remain at “circa 10% below the 2019 level”, adding: “Unless that changes, there will be a permanent scarring and certainly permanent change in the way we shop. Of course, that immediately impacts all the shops and the stores that service the offices in central London and other cities- sandwich bars, restaurants, chemists.” However, she believes that the changes could influence other, more positive, shifts, including more shopping in the evenings or long weekend trips.
Nearly a quarter of UK households are reportedly looking to secondhand and resale shopping in response to the cost of living crisis. A report by Retail Economics and law firm Squire Patton Boggs found that this shift was most prevalent among the 25-44 and 18-24 age groups. They found that one in three respondents were consciously looking to switch to cheaper brands, while one in four planned to make greater use of online research and price comparison tools before purchasing products. However, a company’s values, sustainability and ethics remain important: 78% said they would not switch to a cheaper brand if the company’s values did not align with their own. Retail Economics chief executive Richard Lim commented: “This research shows consumers are paying closer attention to how companies treat their employees and the environment, as well as their customers— and, in some cases, are willing to pay extra to reward companies that ‘do the right thing’.
Leisure
Italian-founded brand Poke House plans to open five more London restaurants this year. The brand, which recently opened a flagship restaurant in Covent Garden, will open branches in Battersea Power Station, Borough Market, St Paul’s, St John’s Wood and Mayfair in the coming months. The company is also considering a site in Kingston as it looks to move outside of the capital. The brand currently operates seven sites across Covent Garden, Canary Wharf, Bank, Notting Hill, Victoria, Spitalfields and Fitzrovia. Poke House has previously said that it wants to open 65 UK sites in the next two years, with the majority of this future estate based outside of London.
Leaders at UKHospitality’s summer conference last week called for the Government to take steps to support investment in the sector following the cost of living crisis. CEO of UKHospitality Kate Nicholls said that tax breaks and business rates reductions could help increase confidence in the sector. Panellist Luke Johnson, co-founder of Risk Capital Partners, said that consumers will be forced to cut back on eating and drinking out, emphasizing: “You can never forget we are a discretionary spend.” He added that while QSR and bigger businesses are better placed to navigate these challenges, exceptional businesses with a strong proposition will also be able to survive and secure investment.
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