retail
Retailers have voiced concern over the effects of rising living costs on consumer spending. The British Retail Consortium said that consumers would begin to spend less over the coming months, impacting high streets. BRC chief executive Helen Dickinson said: “Rising inflation, driven by higher costs of production, higher energy and transport prices, as well as other looming price hikes this spring will mean consumers will have to tighten their purse strings.” A Barclaycard survey found that almost 9 out of 10 respondents were worried about the impact of inflation on their finances. Three in 10 said that rising energy bills would affect their spending on discretionary items.
Amazon has doubled the number of parcel lockers it has in the UK. To meet the high demand for online deliveries and take some of the strain off of its staff, the company has increased from 2,500 lockers to 5,000 in the past two years. Along with InPost, which currently operates 3,000 UK lockers, Amazon is one of the country's primary providers of delivery lockers.
LEISURE
UK hospitality and tourism bodies have published a study supporting a permanent VAT cut for the leisure sector. UKHospitality, the British Beer and Pub Association, the Tourism Alliance and the Association of Leading Visitor Attractions have called for the current reduced rate of VAT (12.5%) to be maintained, which will remain in line with the European average and contribute to ‘levelling up’ UK attractions. VAT is set to revert to 20% in April.
PROPERTY
Department store Fenwick is to sell its Bond Street flagship for £500m. The site is being marketed as a potential redevelopment opportunity- Fenwick has planning permission to build four floors of offices above the store. A previous attempt to sell the nine-store Fenwick portfolio fell flat in 2020 due to the pandemic.
Westminster Council has dedicated £190m for a support fund to help the West End recover from the effects of the pandemic. Supported initiatives include recruitment drives for hospitality staff, redesigning Oxford Circus to be more pedestrian-friendly and increasing public attractions to drive visitors. The council has also called for a sales tax on online retailers and the reintroduction of VAT-free shopping. Rachel Robathan, leader of Westminster Council, said: “At the heart of the capital, Westminster has a special role in the nation’s economy – we generate more than £60bn a year and support one in eight jobs in the capital.”
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