Convenience channel lost less number of stores in the first half of 2020 when compared to the same period in the previous year, a new research by retail data consultancy the Local Data Company (LDC) has shown.
The channel including food retailers, off licences and convenience stores has seen a net loss of -768 in H1 2020 compared to -787 in H1 2019, only sector to see an improvement in net decline compared to the previous year.
The overall figures for the retail and leisure market reveal the devastating impact of the COVID-19 pandemic with a net loss of -7,834 units in the first half of the year, a 115 per cent increase from the decline seen in H1 2019 (-3,647).
LDC said this represented the biggest decline seen in a H1 period since its records began.
The report has also revealed the resilience shown by the independent sector when compared to the chains/multiples as the net change in the number of occupied units for the former was less than a third (-1,833) of the figure for chains (-6,001).
“The independent market has fared better as these businesses have been able to be more agile, bringing in new product lines and offering food deliveries; have a smaller cost base to cover during periods of little or no trade and have been able to take advantage of government support schemes,” commented Lucy Stainton, head of retail and strategic partnerships at LDC.
“However, as we continue through the year with various local lockdowns and restrictions, life will not get any easier for operators.”
There has been a 21 per cent increase in the total number of closures than H1 2019, nullifying the 5 per cent increase in openings.
Comparison goods retail (selling physical goods such as fashion, footwear, books and homeware) accounted for 64 per cent of all lost units in H1 2020 with a net loss of -4,975 stores while leisure and hospitality market declined by a net -1,263 units, up from -352 in H1 2019.
The loss in the former channel is the highest for any H1 period since 2014, the report noted.
“These figures mark only the first phase in the impact of the pandemic on the retail economy this year with 20 per cent of the market is still temporarily shut and with more months of difficult trading conditions ahead,” Stainton added.
