Experts Warn of Long-Term Effects on Retail from Remote Work

  • WFH shift may ‘permanently scar’ high streets, experts warn
  • Footfall in towns and cities still below pre-pandemic levels
  • Research found footfall decline in May: -16.4% in high streets, -17.8% in shopping centres, -3.5% in retail parks
  • Online shopping growth contributes to weakened footfall
  • Footfall may remain 10% lower if remote work continues
  • Market towns and smaller cities see more local business patronage

The shift to remote work during the pandemic has allegedly caused ‘permanent scarring’ to UK high streets, according to Springboard. Diane Wehrle, chief executive of the retail insights group, told the Telegraph that footfall in towns and cities is still below pre-pandemic levels, with subdued visitor numbers even over the Jubilee weekend. The latest research found that footfall declined by -16.4% in high streets, -17.8% in shopping centres, and -3.5% in retail parks compared to pre-pandemic levels. Wehrle warned that if remote work continues at current levels, it would likely mean footfall would permanently remain 10% lower than it otherwise would be. She said, ‘It impacts footfall because workers are simply not in towns or cities as much.’ Unless there is a substantive return to the office by employees, footfall will continue to remain at circa 10pc below the 2019 level. However, she noted that remote work has seen market towns and smaller cities patronised more by home workers, leading to rediscovery of local high streets.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information from a reputable source (Springboard) about the impact of remote work on high streets in the UK. It includes relevant data and quotes from an expert in the field. However, it could have included more context or statistics to support the claims made.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of remote work on UK high streets and offers insights from a retail expert. However, it could benefit from more data or examples to support its claims and explore potential solutions for affected businesses.
Financial Relevance: Yes
Financial Markets Impacted: Retail and office-related businesses
Financial Rating Justification: The article discusses the impact of remote work on high streets, footfall in towns and cities, and shopping patterns, which affects retailers and businesses in those areas. This has financial relevance as it impacts the performance of these sectors and could influence companies’ revenues and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The article discusses the impact of remote work on high street footfall and its potential long-term effects on retail businesses.

Reported publicly: www.retailsector.co.uk