How COVID-19 Has Forced Retailers To Adopt New Ways To Survive
by Liz Seyi Digital marketing manager
To say that the coronavirus
situation has profoundly impacted on the UK retail sector would be something of
an understatement.
The obvious immediate enforced changes or temporary closures
during periods of lockdown have in many cases transformed into permanent
closures as brands look to reduce costs. Meanwhile, many familiar retail names
have opted to shift their operations either partly or fully online.
Some of these developments may seem to represent an acceleration
of trends already evident long before the pandemic. After all, retail
businesses were generally well aware, even prior to COVID-19, of the
ever-heightening importance of being active on social media, showing brand
transparency, and espousing sustainability.
These are all trends that have long exerted their influence on
how British retailers continually reinterpret and evolve their online presence.
So, what has been especially notable about how brands have
responded to the previously unheard-of conditions the pandemic has brought? In
a nutshell, retailers have shifted their focus from how they can survive in the
short term, to how they can thrive in the longer term – with the UK High Street
unlikely to ever be quite the same again.
What have specific retailers done in response to the
pandemic?
We have reached the stage of the coronavirus crisis where, for a
great number of high-street brands, the permanent closure of stores has become
all but unavoidable. This has led many of them to switch some roles to the e-commerce
sector, as part of a broad rethinking of their business approach.
We have seen, for example, John Lewis closing some of its stores
permanently and considering heavy investment in e-tail. Indeed, the partnership
has stated that online shopping now accounts for 60-70% of its sales, compared
to just 40% before the pandemic.
The shirts and ties retailer T. M. Lewin, meanwhile, went into
pre-pack administration last summer, and announced that all 66 of its UK stores
would be shuttered. However, the brand continues to have an e-commerce
presence.
Cath Kidston, too, fell into administration not long after the
beginning of the first lockdown. As a consequence, all 60 of the chain’s UK
stores were closed, although its online operations remain.
Away from the obvious high-street retailers, even major names in
the arts have discovered the value of maximising an accessible online presence.
The National Theatre, for instance, has caught the eye with its
‘National Theatre at Home’ streaming service, which makes available one-off
rentals, monthly and annual subscriptions to an international audience. This
will doubtless include many individuals who would not have had the luxury of
visiting the theatre in person, even before the pandemic and is an example of
how COVID-19 may even present opportunities for brands to expand, rather than
merely retain an audience.
However, the broader trend is not just of retailers shifting
previously brick-and-mortar operations online but also of offering their own
delivery services. Cambridge Wine Merchants is among those to have rapidly
moved to offer in-house delivery to customers based nearby. Other retailers
have used existing delivery platforms such as Deliveroo, Ocado and Just Eat,
thereby fuelling their stellar growth during the coronavirus crisis.
Position your business advantageously to thrive after
the worst of the pandemic
While we may never live in a truly ‘post-COVID-19’ world and
much uncertainty remains about the recovery, one thing has become clear for
brands across the UK — the importance of modernising and retaining the agility
to thrive in an era when the high street may not have the same role it once
did.
We can play our own role in helping your business to not just
survive, but thrive in the months and years ahead here at London Registrars. To
learn more about our expertise and track record in company
secretarial practice for PLCs,
please do not wait any longer to contact our team or call us direct on 07415 107436.
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Created on Mar 24th 2021 00:54. Viewed 248 times.
Great Article! Very Informative! Thank You So Much!
Apr 3rd 2021 02:39