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Tag: high street

  • Norwich retail businesses hit hardest during pandemic

    The pandemic has caused major losses for businesses across the UK, particularly in the retail sector. While we have not yet seen further lockdowns, the threat of Omicron looms and could spell danger for companies already struggling to stay afloat during the pandemic.

    Research from Wholesale Clearance UK, which specialises in selling bankrupt and surplus stock, shows the areas of the country where the retail industry has been most affected, which could provide clues as to what will happen if Omicron continues to spread.

    Through FOI requests, they were able to see how many retail businesses in each region of the UK became insolvent, or were unable to pay their debts, from March 2020 to September 2021.

    Norwich was most affected, with 49 insolvencies in the region, meaning that 8.27 out of 100 retail businesses closed their doors. Norwich suffered most during Winter of 2020, when high case numbers sent them into Tier IV closing down non-essential businesses.

    Newcastle upon Tyne was also heavily affected, with 33 retail insolvencies during that same period. However, the proportion of insolvent businesses was significantly lower than that of Norwich, with 3.36 out of 100 retail businesses unable to pay their debts.

    Rapidly changing lockdown restrictions led to much of the decline in retail businesses, as shoppers and business owners were not confident in terms of what kind of retail was safe or legal to engage in. Wholesale Clearance’s Managing Director Karl Baxter explains the issue.

    “With strict lockdowns forcing temporary closures and subsequent changes to guidelines, this has no doubt devastated a once thriving industry and put fear into once confident shoppers,” Baxter says.

    Despite the overall decline in retail, research from Pollinate suggests that the pandemic has led more people to support their local shops in an effort to keep the high street afloat. In an international survey, 53% of people stated that shopping locally was more important than before due to the pandemic.

    It is not yet clear if more restrictions will come in light of Omicron, but as Baxter explains, it is essential to shop local if your high street is to survive.

    “In the new year, hopefully, restrictions aren’t to blame for subsequent insolvencies,” Baxter says, “However, to help your favourite shops from closing down, we must support the high street and local businesses.”

    Credit: https://www.wholesaleclearance.co.uk

  • Avoiding the death of the high street

    Last week, Finito World published a report on high numbers of retail insolvencies in the UK, which showed the most affected areas. Norwich and Newcastle upon Tyne saw the highest number of retail businesses shut down, and high streets across the UK have suffered greatly. Now, CEO Karl Baxter of Wholesale Clearance UK shares his strategies for keeping the high street alive.

    Data from Statista reveals that 75% of people bought primarily online throughout 2021, which is a jump from the previous level of about 40%. Clearly, online retail options have been essential to the survival of high street companies throughout Covid-19, but they are not the only way to keep the doors open.

    Baxter suggests that community involvement is essential to fostering customer loyalty and getting some much-needed foot traffic in empty stores. Many shoppers will already be aware of the need to support their local businesses throughout the pandemic in order for these businesses to survive. For those who need a bit more incentive, Baxter suggests offering a unique customer experience, as well as special promotions similar to the 2020 ‘Shop Local Week’, and the British Independent Retailer’s Association’s ‘#shoplocal’ campaign. 

    Another way to boost local business is through social media engagement. Baxter points out that, while large companies can run national ad campaigns, local businesses have a deeper understanding of their customer base which allows for more targeted advertisements which reflect the community. Research from Smart Insights shows that 74% of shoppers use social media to guide their purchasing decisions. People generally trust their neighbours, so good interactions on Instagram and Facebook. or even a mention on Nextdoor from a satisfied customer can help get people in the door.

    Despite the removal of restrictions, many shoppers are still not comfortable with in-person retail, which is completely understandable. Therefore, while Baxter maintains that in-person shoppers should remain a top priority, a digital presence is essential to staying afloat. Click and collect services and same day delivery can beat the larger companies in terms of how quickly customers can receive their goods. This can another practical reason to  shop local, which is powerful when coupled with the awareness that supporting small businesses is a noble cause.

    Baxter also suggests extending your company’s personal brand to the website. Shoppers will no doubt be craving an experience different from the bland, general sites of the online retail giants, so offering a personal experience even online can help to build and maintain a customer base.

    The pandemic has fundamentally changed the way that people shop, and it doesn’t look like these changes are going anywhere. To survive, businesses must adapt, and inventive, entrepreneurial small businesses are up to the task.

    Sources:

    https://www.wholesaleclearance.co.uk

    https://www.statista.com