Coastal and historic towns thrive amid “strongest sales growth of the pandemic” for UK high streets

Pent up demand for in-store shopping, coupled with the reopening of hospitality and enduring appreciation of the return of non-essential retailers, has helped the UK’s retail scene to the strongest sales growth of the pandemic.

On a total sales basis, sales have increased 10 per cent in the four weeks covering May 2nd to 29th this year, against a decline of 2.7 per cent for the same period in 2019.

Meanwhile, footfall across the UK’s retail destinations has risen by 11.6 per cent week on week. High Streets witnessed increases of 17.4 per cent versus 8.7 per cent in shopping centres and just 2.3 per cent in retail parks.

However, it is UK holiday destinations such as coastal and historic towns that have witnessed the greatest increases, with a 37. 1 per cent rise in coastal areas, and 24.8 per cent rise in historic places.

Helen Dickinson OBE, chief executive, British Retail Consortium, said: “Retail sales were buoyant in May thanks to the reopening of hospitality, coupled with the afterglow of non-essential retail’s own return.

“Pent-up demand for the instore shopping experience, as well as the first signs of summer weather, helped retail to the strongest sales growth of the pandemic.

“There is a growing sense of consumer confidence, boosted not only by the widespread uptake of vaccinations and testing, but also retailers’ own significant investment in safety measures.”

Dickinson has explained that large cities remain the hardest hit by the pandemic, with many consumers continuing to work from home and increasingly choose to shop local. It has prompted new calls for a re-evaluation of the role of the high street.

She said: “Now is the time to consider what our future high streets and town centres will look like a decade from now. We must adapt to these changes, not only to build back better, but also to build forward.

“With vacancy rates still rising in many parts of the country, we must reimagine how we integrate residential and commercial property, allowing us to build stronger local communities that encompass leisure, retail, services, and homes.

“This will require retailers, property developers, and local government to work together and plan city centres that cater to these changing demands and truly innovate the high street model.”

A summer of cautious optimism

Elsewhere, it is the change in weather combined with the late May bank holiday that has seen shoppers take to the high streets and shops of some of the UK’s coastal areas and historic towns, as staycation holidaymakers fuel an ‘increase in footfall that surpassed that in any other type of UK high street.

According to Springboard insights director, Diane Wehrle, “the fact that the bank holiday occurred a week earlier than in the previous two years meant that footfall in both coastal and historic towns was actually higher last week than in the same week in 2019.

“Whilst the attraction of coastal and historic towns to visitors meant they benefitted the most last week, there was still a significant rise in footfall in central London and in other regional cities across the UK, while the most modest increases once again occurred in more local high streets.”

Paul Martin, UK head of retail, KPMG, said: “Retailers now face an interesting few months as they assess how they best entice their customers back to stores and what the right blend of offline and online will be as spending patterns settle in a post Covid world.

“With the prospect of the full lifting of Covid restrictions coming into force this month, there will be increased competition for share of wallet as consumers focus on those leisure and hospitality activities that have been denied to them due to lockdown.

“It is a summer of cautious optimism for many retailers, who will be hoping that the continued success of the vaccine roll-out and an improving economy will offer scope to spark a big surge in consumer spending.”

Pop culture retailer The Geek Retreat on track to open 60 of its planned 100 stores this year

Geek Retreat, the geek culture retailer, gaming café and events venue rolled into one, is on track to open 60 of its planned 100 new stores on UK high streets by the end of 2021, creating 360 jobs around the country.

The franchise is on track to meet its previously announced target of a total of 100 new stores in 2022.

The Geek Retreat franchise, which opened its first store in Glasgow in 2013, now has 27 stores, with the newest in Truro, Cornwall, which opened last week. It has stores in town and city-centres such as Glasgow, Newcastle, Leeds, the Wirral, Northampton, Chelmsford and London, which stock geek culture merchandise like comics, posters, clothing, figures and memorabilia as well as games and trading cards.

Fans of everything from Marvel and sci-fi, to Warhammer and Pokémon – and even traditional board games, are welcome at the stores and play their hobbies in the café.

New stores are due to open in a number of locations around the UK, including Blackburn, Hereford, Exeter, Lincoln, Ipswich, Bedford and Exeter, in the next couple of months.

To support the growth of the business, the retailer has also announced a series of new hires, including four franchise development managers who will support the expanding geographical footprint of the brand. A further 25 employees will join the head office team in new roles such as New Store Openings Managers, Event & Gaming Specialist and Head of Digital & Ecommerce.

Following the recent brand relaunch, Geek Retreat has also developed and launched a new menu in consultation with its franchisees. The full menu roll-out in partnership with leading food service firm, Booker, sees the introduction of a high-quality menu with vegetarian, vegan and kid’s options, ensuring there’s something to suit everyone’s taste.

Peter Dobson, chief executive of Geek Retreat, said: “We are pressing ahead with our expansion plans and are on track to meet our target for new stores. Despite the impact the pandemic has had on the high street more generally, the Geek Retreat proposition and unique culture has proved particularly resilient and has shown us how important it is for people to have a safe please to visit and to share their interests with friends as part of a community.”

All stores commit to a COVID-19 secure environment, with strict social distancing and hygiene measures in place, to give customers extra piece of mind that they can visit in confidence.

UK toy retail chain The Entertainer moves into Asda in ‘test and learn’ concession partnership

The UK toy retail chain, The Entertainer is moving into the supermarket giant, Asda, as part of the grocer’s ‘test and learn’ partnership strategy. The move will see The Entertainer turn the toy aisles of five of Asda’s UK stores into branded concessions from early next year.

Under the terms of the partnership, The Entertainer will have full responsibility for the product range, pricing and merchandising. The supermarket has said that it is in response to a shift in consumer behaviour – brought on by the coronavirus – that sees an increasing number of shoppers looking to complete multiple shopping ‘missions’ in one trip.

This isn’t the first partnership of its kind for Asda who has recently expanded its trial run with musicMagpie to a further 31 stores and has formed a new deal with Per-Scent, the branded fragrance distributor, at its Stevenage store.

Asda said its strategy of bringing brands that are popular with customers into stores began last year with jewellery and accessories retailer Claire’s and has since been extended to partnerships with Greggs, B&Q, musicMagpie and now The Entertainer and Fragrance Point.

“The Entertainer are experts in toy sourcing and retailing so we are really excited to work with them and are confident their offer will prove very popular with customers,” Asda partnerships senior director Matt Harrison said.

“We anticipate working with more great brands like The Entertainer and Fragrance Point in the coming months as we look to make our stores even better places to visit.”

The Entertainer executive chairman, Gary Grant, said: “We are delighted to be partnering with Asda to bring the wonder of The Entertainer to their customers. The trial in five stores from February 2021 will give customers the opportunity to shop our range of the latest toys and games, including our great value exclusive range from Addo, where ever is most convenient to them.”

Boots to cut 4,000 jobs and John Lewis to close eight of its 50 stores in amid Covid-19 fallout

The UK retailer, Boots is to cut 4,000 jobs, its parent company Walgreen Boots Alliance has announced, having been badly hit by the coronavirus pandemic and lockdown measures. The company said it will cut around seven per cent of its UK workforce.

According to Walgreens, sales at Boots have plunged during the lockdown.

“The adverse impact of Covid-19 on sales in the quarter was approximately $700 million to $750 million, with the majority of the impact related to the Retail Pharmacy International division,” the company said in a statement released today. “This reflected a dramatic reduction in footfall in Boots UK stores – down 85 per cent in April, as consumers were advised to leave home only for food and medicine.”

Walgreens Boots Alliance CEO, Stefano Pessina has said: “Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets.

“Shopping patterns are evolving more rapidly than ever as consumers further embrace digital options, spurring us to accelerate our ongoing investments in digital transformation and neighbourhood health destinations.”

Boots’ announcement follows further bad news for retail as John Lewis detailed its own plans to close eight of its 50 stores this morning, including major outlets in Birmingham and Watford. The closure will result in the loss of around 1,300 jobs.

All four of the group’s smaller At Home stores, in Croydon, Newbury, Swindon and Tamworth, are to close as well as two outlets in travel hubs at Heathrow and St Pancras station in London, reports The Guardian.

The Group has said that the eight shops were already ‘financially challenged’ before the outbreak of coronavirus, but that the pandemic had accelerated the move from in-store shopping to online. Figures state that before the virus hit, 40 per cent of John Lewis sales were online, but since the pandemic, this could now be closer to 60 to 70 per cent of total sales this year and next.

Sharon White, the chairman of the department store’s parent group – the John Lewis Partnership, said: “Closing a shop is always incredibly difficult and today’s announcement will come as very sad news to customers and partners. However, we believe closures are necessary to help us secure the sustainability of the partnership, and continue to meet the needs of our customers and wherever they want to shop.

“Redundancies are always an absolute last resort and we will do everything we can to keep as many partners as possible within our business.

“There are many reasons to be optimistic about the Partnership’s future. Waitrose and John Lewis are two of the UK’s most loved and trusted brands and we have adapted to the challenges of the pandemic by responding to the new needs of customers. We will soon announce the output of our strategic review which will ensure our brands stay relevant for future generations of customers.”