By Ian McConnell
NEARLY eight out of ten non-food retailers are considering redundancies as part of cost-saving measures amid the coronavirus crisis, a survey has revealed.
And nearly half of non-food retailers are mulling store closures, according to the survey published yesterday by consultancy Retail Economics and law firm Squire Patton Boggs.
Other measures being considered by these retailers to reduce costs include lease renegotiations, cited by 68% of respondents. Meanwhile, 63% are mulling review of supply contracts and 42% are looking at investment in online operations.
The survey shows 89% have taken up the coronavirus job retention scheme, under which the UK Government pays 80% of the wages and salaries of furloughed workers up to £2,500 a month. Meanwhile, 68% of survey respondents have taken up the option of deferring value-added tax payments.
Non-essential retailers closed their doors when the UK Government moved to full lockdown on March 23.
These stores are allowed to reopen in England from Monday. The precise timetable for reopening of non-essential retail in Scotland has yet to be laid out.
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The Retail Economics survey shows that, as consumers consider returning to non-food shops, safety is being prioritised above price, quality, choice and the overall experience. Nearly half of consumers surveyed said that safety was the most important factor when deciding to purchase retail products in-store.
Retail Economics chief executive Richard Lim said: “The survival of so many retailers will hinge on the success of reopening stores over the coming weeks and the pace at which consumers return.
“We’ve already witnessed a significant shift towards online necessitated by the closure of non-essential retail stores...It is inevitable that some of these behaviours will become sticky.”
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