Is there an end in sight as the Covid-19 pandemic continues to devastate the UK Highstreet?
The UK high street, once a social hub for many, has recently become a shadow of its former self. A bustling part of our towns and cities, the high street has housed the retail sector for centuries in the UK. However, with the introduction of the digital age and the effects of the Covid-19 pandemic, does 2021 mark the death of our highstreets?
Image 1: Topshop's Oxford Street Flagship Store
Traditionally an industry based in brick and mortar, retail was one of the sectors most affected by the pandemic. Within weeks, our once-bustling highstreets and retail parks were empty, becoming ghost towns. From luxury to high-street retailers, the challenge to create meaningful yet effective branding became fundamental, and, in order to survive, brands turned to the internet. With many shielding and self-isolating, online shopping has become the new normal with experts predicting that by 2040, 95% of all purchases will be made online (Lopienski, 2020).
In February 2021, Topshop’s announced that its flagship store on Oxford Street was to be closed permanently, revealing the crippling effects of the pandemic on the retail industry. Along with their flagship store, Topshop also made the decision to close all physical stores, with 2,500 people losing their jobs overnight (Munbodh, 2021). The move from the high street to online was only made more prevalent when online retailer ASOS acquired Topshop, moving all sales to the internet.
Making the switch to online has a whole host of benefits for retailers. Not only is it more cost-effective for a business, but online retail also allows a company to access consumer insight tools, helping them create a more efficient market plan. Online retail allows a business to sell to a larger market, not only restricting them to traffic generated by the local high street.
With some of our biggest retailers abandoning the highstreets in favour of online retailing, how will local and independent businesses survive? The majority of small businesses, cafes and restaurants depend on the traffic generated by consumers in order to survive. With physical retail rapidly disappearing from the high street, smaller businesses will suffer, potentially ending not only existing retail spaces but independent businesses across the country.
The events of 2020 lead to an extensive adjustment in the fashion retail industry. It taught the industry that it is no longer feasible to rely solely on the in-store retail environment. The transition from bricks and mortar to super-fast Wi-Fi revolutionised the retail industry, with the effects of the Covid-19 pandemic only supporting the digitalisation of fashion consumption. In order to survive, brands had to create a significant online presence and deliver the customer experience through alternative means, marking the move from the high street to online retail.
References:
Lopienski, K (2020) Ecommerce Venture Capital Trends: Which VCs & Seed Investors are Investing in Ecommerce? [Online] Available at: https://www.shipbob.com/blog/ecommerce-venture-capital/ (Accessed 21/2/2021)
Munbodh, E (2021) All Topshop stores to close and 2,500 jobs axed as ASOS buys chain for £295million [Online] Available at: https://www.mirror.co.uk/money/breaking-asos-buys-topshop-265million-23419628 (Accessed 21/2/2021)
Image Reference:
PA Media (2021) Topshop’s flagship oxford street store up for sale [Image] Available at: https://www.bbc.co.uk/news/uk-england-london-55551743 (Accessed 21/2/2021)
Editor: Lacey Wint