Publication
Restructuring in the retail sector: what does the future hold?
It’s clear the pandemic has caused a seismic shift in consumer habits, and with global trading relationships evolving following Brexit, 2021 marks an important sea change for the industry. Alastair Massey Restructuring Advisory
Synopsis
The retail sector is a mainstay of daily life in the UK. It generated almost £400 billion in the year prior to the COVID-19 pandemic – representing a third of household spend on average – employing 2.9 million people. The sector has weathered challenging times previously, but the pandemic is unlike any event experienced before. A cycle of lockdowns and social distancing restrictions have significantly reduced footfall in cities and town centres, and no one can predict when it will return to pre-COVID volumes; if at all. While there’s been an increase in the number of consumers shopping locally and supporting small businesses, social distancing measures have hampered visitor numbers, and safety concerns have inevitably deterred many from venturing out. By contrast, online retail has continued to grow and its trajectory has undoubtedly been accelerated by changing consumer habits driven by the pandemic. While the market share of e-commerce has risen steadily since the early noughties, it jumped significantly last year, and during the second lockdown, online purchases accounted for just under a third of all retail sales, up from 21 per cent the year before.
Alastair Massey Partner Restructuring Advisory London +44 (0)20 3005 4279 alastair.massey@frpadvisory.com
TonyWright Partner Restructuring Advisory London +44 (0)20 3005 4295 tony.wright@frpadvisory.com
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