The Retailer Autumn Edition 2021

THE RE TA I L ER

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LOOKING BEYOND LOCKDOWN: THE FUTURE OF GB RETAIL

Sarah Abu-Amero Marketing Executive Local Data Company

K ey findings from the latest Local Data We began 2021 in our third national lockdown, after a turbulent Christmas period which saw varied tier restrictions across the country. As the vaccine rollout gathered pace and restrictions eased, we emerged into a retail market reeling from the effects of a pandemic. Much has been made of ‘recovery’ for the retail sector: what recovery could look like; when we can expect to see it; who will recover, and how; and where we should invest our time and resources to bring recovery about. Our latest report, comprising our research and analysis for the first half of 2021, has already shed light on the cumulative impact of the pandemic on retail, and what we can expect to see in future. Record growth for independents For the past few years, independent retailers have been more resilient than bigger brands. In the first half of this year, independents grew by 804 units, the first increase tracked since H1 2017. This growth was mostly seen in the convenience and leisure sectors; the number of independent grocers, butchers, bakers, cafes and fast food outlets grew. Government support, business rates relief and the commercial rent moratorium helped some businesses remain operational, and a large supply of vacant units allowed independent business owners to negotiate better rent terms. Moreover, local businesses were boosted by customers, not only because they were working from home, but also because of growing consumer trends towards sustainability and supporting small business. Company report, and what they mean for rebuilding the retail sector post-pandemic

Shopping centres were hardest hit The effects of high-profile administrations, particularly those ofDebenhams and theArcadia group, are continuing to be felt most acutely by shopping centres. Since H1 2020, the vacancy rate for shopping centres has risen by 3.8%. The loss of major anchor stores caused strain on surrounding retailers, and locations such as retail parks and high streets offered a safer, socially-distanced shopping experience. Not all shopping centres were alike, though: it was the larger retail destinations with a greater exposure to at-risk categories like fashion that suffered most. Smaller community shopping centres, more often anchored by a supermarket and hosting a higher proportion of ‘essential’ retailers, were better placed to cater to local populations in terms of both retail mix and location during periods of restriction. Fast food takeaway thrives H1 2021 saw the emergence of a new fastest-growing category: fast food takeaways gained a net 333 units in this period. With restrictions on indoor dining only having been lifted in May this year, we still relied on takeaways as we did in 2020. Fast food brands, which often have established delivery platforms, grew their success by expanding their estates strategically to capture greater residential catchments, with many opening ‘dark kitchens’ to support fast delivery fulfilment.

download-report-h1-2021.” ‘‘

The full Local Data Company report on H1 2021 is available to download free of charge at www.localdatacompany.com/

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Embracing and adapting to emerging consumer trends will give retailers a better chance of thriving amid uncertainty.”