Pandemic Accelerates Shift to Online Shopping
- Record number of shop closures in UK
- Over 11,000 chain operator outlets closed in first half of 2020
- Net decline of 6,001 shops compared to last year
- Pandemic accelerates existing retail trends
- Consumer demand for in-person shopping remains
- COVID-19 restrictions force changes in consumer behavior
The UK retail sector has seen a record number of shop closures in the first half of 2020, with over twice as many net closures compared to last year. According to research by the Local Data Company and PwC, 11,120 chain operator outlets have closed so far this year, while only 5,119 shops opened. This has resulted in a net decline of 6,001 stores. The pandemic has accelerated existing trends in retail, with consumers shifting to online shopping and changing their priorities due to COVID-19 restrictions. Despite the closure rate, store openings have remained relatively stable compared to previous years, indicating that consumer demand for in-person shopping remains. Lisa Hooker of PwC said, ‘What we have seen is an acceleration of existing changes in shopping behaviors alongside forced experimentation from COVID-19 restrictions.’ Lucy Stainton of the Local Data Company added, ‘This is just the tip of the iceberg, as 22% of the multiple market remains temporarily closed. With each passing week, the likelihood of these businesses reopening decreases.’
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the increase in shop closures in the UK during the first half of 2020 compared to previous years, citing research from the Local Data Company and PwC. It also includes expert opinions on the impact of COVID-19 on retail trends and the potential for further closures in Q1 2021.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in shop closures in the UK and how the pandemic has accelerated existing trends in retail. It also includes insights from experts on the potential future impact of local lockdowns and restrictions. However, it could benefit from more data or examples to support its claims and explore the consequences for specific businesses or industries.
Financial Relevance: Yes
Financial Markets Impacted: Retail and hospitality sectors
Financial Rating Justification: The article discusses the impact of COVID-19 on retail and hospitality businesses, specifically highlighting increased shop closures and temporary closures in the UK. This has financial relevance as it affects companies within these industries and could potentially impact their performance in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk