Lockdown-Hit Shops Need December Trading Clarity

The retail and hospitality sectors, both badly hit by the coronavirus pandemic, have pleaded with the government for clarity over how they can safely reopen in time for the crucial Christmas season.

Yahoo! Finance reports that MPs on the business, energy, and industrial strategy (BEIS) select committee listened to evidence on the economic effects of the disruption caused by COVID-19 that has seen retailers, gyms and hospitality firms forced to close down for a second time this year.

The head of UKHospitality, Kate Nicholls, told the BEIS committee that her industry, including pubs and hotels, had ‘not got above break-even’ before restrictions tightened again in September.

She added that despite the continued government support and extension to the furlough scheme, the sector had lost 660,000 jobs, and businesses were in a ‘far less resilient state’ as winter approaches.

Ralph Findlay, CEO of British brewery, pub and hotel operator Marston’s, told MPs that the pubs sector had lost confidence in the government due to a lack of engagement and poor communication as it headed towards its busiest time of the year.

He added that he was yet to find out if he could reopen the business on 2 December, when the second national lockdown is due to end.

“I don’t know what restrictions at this point I’m going to be working to,” he said.

“I don’t know how many people, out of the 10,000 I’ve got on furlough, that I can bring back. I don’t know what discussions I need to have with my supply teams and logistics teams about getting food and beer into our pubs.”

Helen Dickinson, the head of the British Retail Consortium, said store sales were set to be £2bn down per week during the lockdown, and warned over further job losses with the closure of non-essential retail during the second lockdown, saying one company had just informed her that 4,000 jobs were at risk without a solid festive season.

“The most important thing at this point is that we have real clarity that re-opening will occur as planned because I think without it the knock-on effects for many retail businesses will be severe,” she said.

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Sarah