Consumer confidence and spending are unlikely to even begin to resemble pre-pandemic levels in the short to medium term. And to compound the situation, there is always the risk of a second wave and a no-deal Brexit waiting to heap more misery on the economy and retail in particular.
Today, Go Outdoors, the retailer which sells bikes, tents and waterproof clothes, is on the brink of collapse, and with it 2,400 jobs are at risk. It is understood to have lined up restructuring experts from Deloitte.
It is not alone. Cath Kidston, Quiz, Monsoon, Victoria’s Secret are just some of the other retail businesses which have succumbed to the multiple pressures currently impacting the sector. And many, such as John Lewis, Debenhams and Arcadia have yet to reopen all their stores.
And as we reflect on the first week of non-essential retail being allowed to reopen, the picture is far from encouraging. Those images of long queues outside the likes of Primark, Apple
AAPL, Nike
NKE, Sports Direct and Zara appear to have been ephemeral.
Data from yReceipts shows that the growth rate of retail transactions in the U. K. from the start of the week up until the Friday, was just 3%, with overall transaction volumes remaining at around 30%-40% of pre-COVID-19 levels.
