Yesterday’s confirmation that the High Street will reopen next week will boost the spirits of shoppers and retailers alike. However, home delivery firm ParcelHero, which has dubbed Monday 12 April the ‘Glorious Twelfth’, says that the shopping frenzy at the end of the first lockdown fizzled out very quickly.
According to its research, half of all shoppers will never return to their pre-Covid High Street spending levels.
David Jinks, ParcelHero’s head of consumer research, said: “There is no doubt that many shoppers are eagerly awaiting the ‘Glorious Twelfth’, when we can finally return to clothing and department stores and get that much-needed haircut. However, at the end of England’s first lockdown last June, after initial queues outside stores such as Primark and Nike, many shoppers simply returned to buying online. That’s a pattern likely to be repeated this time around.
“Next Monday, we’ll doubtless see substantial queues outside fashion stores and a scramble for the gym. It’s been nearly four months since we have been able to visit many of our High Street favourites. But what kind of town centres and malls will we be returning to? With the likes of Debenhams, Topshop and Dorothy Perkins remaining dark, and even a chunk of John Lewis stores gone forever, it won’t be the experience it was.
“Even before the latest wave of store closures, things looked far from bright. The first lockdown ended in June 2020 and, after an initial burst of enthusiasm and early-morning queues to get into our favourite stores, things fizzled out after a few days.
“Looking at the Government’s Office for National Statistics (ONS) retail sales figures for June 2020, as the first lockdown was lifted, the value of sales actually fell -3.2 per cent against the previous year. Clearly, the massive, pent-up demand many High Street stores anticipated just wasn’t there.
“Town centre stores that had banked on consumers ditching their newly acquired online habits were doomed to be disappointed back in June. Online sales did fall back slightly, taking 31.8 per cent of all retail sales, compared to 33.3 per cent the previous month when non-essential stores were still closed. That was a slight dip, but hardly a return to ‘normal’, given that online was only managing to take 20 per cent of all sales before the first lockdown.
“This time around, the end of lockdown could be even less spectacular. We won’t have June’s weather to tempt us out and our online shopping habits have become even more firmly entrenched. A record 36.1 per cent of all retail sales are now happening online. That’s a 77.6 per cent increase over February 2020. Shoppers of all ages have turned to eCommerce and now find it easier, more convenient and safer.
“Make no mistake, we’re certain to see an uptick in High Street spending on the ‘Glorious 12th’ but any retailer expecting a return to pre-Covid spending is in for a shock. ParcelHero’s latest research reveals 46.7 per cent of shoppers say they will never return to their previous level of High Street spending.
“Only retailers that embrace their website as their most important shop window and ensure their online service matches the standards of their in-store experience will survive.”
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