ADVERTISEMENT

Shoppers in England Return to Stores After Coronavirus Pause

Shoppers in England Return to Stores After Coronavirus Pause

(Bloomberg) -- Waiting in a line outside the Nike store on London’s Great Castle Street, Lara Cauwels said she’d already been to Selfridges for makeup, and to Zara for some basics.

“Now I’m going to Nike because I’ve been working out a lot,” said the 23-year-old American. “I want a tennis skirt.”

As shoppers in England returned to stores on Monday for the first time since March, many queued outside popular retailers in and around London. Cauwels, who forgot to wear a mask, has been making purchases online during the coronavirus lockdown but came out to see items, like makeup, in person. “I’ll probably be back tomorrow,” she said.

Getting people back into stores after a 12-week pause is crucial for Britain’s 400 billion-pound ($502 billion) retail industry, and for the country at large, which relies on consumer spending for about 60% of gross domestic product. While there were some encouraging signs, data on foot traffic compiled by Springboard suggest most stores remained well below where they were last year.

Businesses have gone to some lengths to persuade shoppers it’s safe to come back. At its flagship outlet on Oxford Street, Marks & Spencer Group Plc installed at least 20 large signs, 150 floor markings to reinforce the need for social distancing, sneeze screens on 11 checkout points and three hand sanitizer units at its main entrances. Changing rooms and cafes were closed, and services such as bra fittings were paused.

Shoppers in England Return to Stores After Coronavirus Pause

Primark’s flagship Oxford Street store, near the Marble Arch tube station, reopened with separate entry and exit doors and contactless hand sanitizer stations at the entry. Staff monitored the number of shoppers entering and leaving, and markings throughout the store and regular announcements reminded customers to keep their distance. For the most part, shoppers were respectful of social distancing guidelines, but some popular areas were crowded at times.

‘Jolly’ Staff

Owned by Associated British Foods Plc, Primark doesn’t have an online arm and at one point, when all its stores in Europe were closed, was losing 650 million pounds of revenue a month. “I thought it was going to be packed but it wasn’t really,” said Sarah Slight, who traveled from Enfield, North London. “I felt safe. There was a hand sanitizer as you came in, people were being respectful, the staff were all jolly.”

To encourage consumers to hit the stores, Prime Minister Boris Johnson suggested during a Sunday trip to a London mall that regulations requiring people to stay two meters (6 feet 7 inches) apart in public spaces could be relaxed as infection rates fall. “People should shop, and shop with confidence,” he said.

Desperate to re-start the economy after it shrank by a fifth in April, Johnson must avoid unleashing a second wave of the virus. Britain has lagged behind European neighbors in its handling of the pandemic and in getting businesses back up and running. More than 41,700 people have died from the virus in the U.K., the most in Europe, undermining confidence in the government and leaving some individuals concerned about returning to crowded trains, town centers and shopping malls.

U.K. Data Dashboard

Shoppers in England Return to Stores After Coronavirus Pause

Kyle Monk, Head of Insights at the British Retail Consortium, told Bloomberg TV that the reopening of the industry is “a balancing act between keeping stores profitable and keeping the public safe.” Shortening the government’s advised distance between shoppers from two meters to one meter, which only increases the rate of transmission by a percentage point, would make stores much more viable, he said.

Online Sales

The comments were echoed by Fortnum & Mason Plc Chief Executive Officer Ewan Venters. If the two-meter guideline is still in place in November and December, the upscale grocer could expect to generate only half of its seasonal revenue from the Christmas period, he told Bloomberg Television.

Venters also said Fortnum & Mason’s online sales have increased about sixfold during the lockdown, with customers ordering teas, jam, biscuits and fresh meat from the company’s website. The Piccadilly store, famous for its opulence and customer service, is being creative in separating patrons with signage and marshals in red coats, so as to make customers more confident in returning. The online business could grow from a fifth of group revenue currently to about half in the next three years, Venters said.

Helen Wright, CEO of Belstaff International Ltd., also said the clothier’s e-commerce business has surged in recent months, while the successful reopening of one of its stores in Munich augurs well for the U.K. Wright expects demand to return to the same levels it enjoyed before the pandemic in the second half of 2021.

In the realm of luxury, Harrods saw particular demand for accessories and womenswear, including brands such as Chanel and Louis Vuitton. “But the standout performer was fine watches and jewelery,” Retail Director Laura Brown said in emailed remarks.

Waiting outside a Hermes shop on Old Bond Street, 32-year-old Lu Bai said she was keen to get a fresh bag from the luxury house before moving on to Rolex and Chanel stores nearby.

“I have not shopped for three months,” said Bai, who is originally from China but now lives in London. “So I wanted to get some fresh air, and hopefully some fresh bags.”

©2020 Bloomberg L.P.