Covid-19 Impact on City’s Retail Sector
- Vacant units in the City of London increased by 47% in 2020
- Vacancy rate at its highest level in five years
- City impacted more by Covid-19 than rest of London and Britain
- 54% of closures were hospitality and leisure units
- National chains hit hardest
- Retail categories like shirt makers, jewellers, convenience stores affected
- Opportunities for agile operators in future
The City of London has seen a significant increase in vacant units due to the pandemic, with the number rising by 47% from the end of 2019 to the end of 2020. The Local Data Company reports that the vacancy rate reached its highest level in five years, as city workers stayed home and footfall declined. Many national chains have had to ‘rationalise’ their London estates, particularly in areas with significant declines in footfall. Hospitality and leisure units accounted for 54% of closures, while shirt makers, jewellers, and convenience stores were among the most affected retail categories. Lucy Stainton, head of Retail and Strategic Partnerships at Local Data Company, noted that the area was hit hard because of its reliance on office workers who left during lockdowns. She also mentioned potential opportunities for agile operators in key categories like takeaway food shops and bars once people return to offices.
Factuality Level: 8
Factuality Justification: The article provides accurate information from the Local Data Company’s research on the increase of vacant units and vacancy rate in the City of London compared to Greater London and Britain. It also includes relevant quotes from Lucy Stainton discussing the impact of Covid-19 on the area and potential future opportunities for certain businesses.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of Covid-19 on the City of London’s retail sector, including specific data on vacancy rates and affected businesses. It also includes insights from an expert in the field. However, it could benefit from more analysis or context on how this trend fits into broader economic trends or potential long-term changes.
Financial Relevance: Yes
Financial Markets Impacted: City of London’s retail sector
Financial Rating Justification: The article discusses the increase in vacancy rates in the City of London’s retail sector due to the impact of Covid-19, which can affect property values and rental income for landlords, as well as the performance of companies operating in this area.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the impact of Covid-19 on retail businesses in the City of London, leading to an increase in vacancy rates and closure of certain categories like hospitality and leisure units. However, it does not mention any extreme event in the last 48 hours.
www.retailsector.co.uk