The retail industry, a cornerstone of the UK economy, is navigating turbulent times as recent far-right riots disrupted business operations across the country.
Last week, on 7 August, many retailers closed their doors in response to police warnings regarding more than 100 planned rallies. Despite counterprotesters often outnumbering the far right, concerns about further disruptions remain high.
Go deeper with GlobalData
Violence and looting in cities such as Belfast, Plymouth, and Birmingham have resulted in arrests, with major domestic chains Sainsbury’s, Greggs, and Lush Cosmetics reporting closures, damages, and thefts.
In this interview, Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), shares his insights into how the unrest has rattled the retail industry.
Goodacre discusses the broader impact on consumer behaviour, the challenges of declining footfall, and the critical steps needed to restore confidence in the high street.
Economic impact and footfall decline
Goodacre begins by acknowledging that, thankfully, Bira members have not reported direct damage to their stores.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The overwhelming impact, though, is in a couple of areas,” highlights Goodacre.
“One is that the shop owners were worried, and probably still are worried about the potential fall damage and being caught in the middle of these protests and demonstrations. But more worryingly, is the message it sends out to people of the general public, who will probably think twice if they know there’s a demonstration taking place, before venturing down that high street.”
Furthermore, Goodacre emphasises that the broader impact on the retail sector is substantial, particularly due to a significant decline in footfall.
“I think the wider impact is the severe reduction [in] footfall, which I think has been verified now, and people choosing to spend online as opposed to in-store, which is a negative for many of our members.”
Footfall, the lifeblood of brick-and-mortar stores, has been significantly affected by the riots.
As Goodacre notes: “If you think back to earlier this week, when Plymouth had to advise people not to come into the town centre from three o’clock onwards, that’s really damaging for high-street businesses.”
This decline in foot traffic is particularly detrimental to small retailers who rely heavily on location and community loyalty.
Unlike large chains that have robust online presences, small businesses find it challenging to compete in an increasingly digital marketplace.
Challenges for small retailers
The disparity between small and large retailers becomes more pronounced in such volatile times.
Large chains such as Marks & Spencer or John Lewis, with their significant investments in e-commerce, can weather the storm better than independent retailers.
Goodacre points out: “The small retailer, in many ways, relies on location, being part of that local community, sometimes a bit of a destination value as well if you’re in a tourist area and there’s loyalty there, but the loyalty doesn’t extend beyond people putting themselves at risk.”
The fear of violence and unrest keeps customers at home, eroding the very foundation of this community-based loyalty.
Moreover, the psychological impact on retail staff is another pressing concern.
Goodacre reflects on how working in retail has become increasingly stressful, citing a rise in retail crime and abuse directed at staff.
“It’s a further hurdle. Working in a shop used to be fun, and it should be fun. […] But we have seen, in this last 18 months, it’s been well-documented, a significant increase in retail crime in the form of theft, [and] an even bigger increase in the amount of abuse [that] has been levelled at people [who] are working shops.”
The added threat of being caught in the midst of riots makes the retail environment even more daunting, potentially affecting staff retention and the appeal of retail jobs.
“It’s worrying that places like high streets and shops, which should be safe to enjoy, at this moment in time don’t seem to be,” adds Goodacre.
Security concerns and costs
Security has become a critical issue for retailers, particularly in the wake of these riots.
While large retailers can afford to increase their security measures, small businesses often lack the financial resources to do so.
Goodacre explains: “There is an increased awareness and presence of security staff, both inside and outside for the larger guys. […] For small shops, that’s just not feasible, financially feasible. It’s not feasible now, and it wouldn’t be in the future.”
In such cases, Bira advises smaller retailers to prioritise safety, even if it means closing early to protect staff and property.
“Our advice is, and has been, that if you believe there’s a risk to your business and to your employees, as much as it pains us to tell you this, but you really ought to close early, enable your people to get home safely and protect your business as best you can.”
The role of government and community
Goodacre praises the newly inaugurated Labour government and police response to the riots, noting their swift action in prosecuting offenders.
However, he highlights the need for ongoing support, particularly in the area of insurance.
“I think the area where there will be some concern is, invariably, if your business has been attacked and you’ve got some damage, are you covered on insurance? Will the insurance company deal with it quickly?”
He suggests that the government might need to intervene to ensure that businesses receive prompt support, possibly through a central fund or grants for those not adequately covered by insurance.
In terms of recovery, Goodacre urges small retailers to engage with their local communities. He believes that rebuilding consumer confidence will require a collective effort.
“I would urge every one of our members to get involved. They’re part of the community, be part of the clean-up process, be part of the representation of their high street, should they be in an area affected by a demonstration.
“I think it really is about working with the community, establishing a profile within that community as a business who wants to make it better, wants to recover from it, whatever mess is left behind and really reinforce that bond that they should have with their local community.”
Long-term implications and consumer confidence
Despite the immediate challenges, Goodacre remains cautiously optimistic about the long-term impact of the riots on consumer behaviour.
He draws a parallel with the Covid-19 pandemic, where fears that consumers would permanently shift to online shopping proved unfounded.
“It’s really interesting, […] the penetration of online shopping has fallen consistently since the Covid restrictions were lifted back in 2021. I think the figure was 79% of shoppers prefer to shop on the high street.”
The key, according to Goodacre, is ensuring that high streets are safe and welcoming.
However, the spread of misinformation through social media remains a significant obstacle. False rumours about upcoming demonstrations can deter customers from visiting shopping districts, further impacting sales.
“I think that’s part of the problem, the power of social media and the internet is to our detriment in that respect, because people think ‘I’ve heard there’s going to be a demonstration, I won’t bother’. It’s a rumour, it’s not true, but people don’t want to take the risk.
“That’s the real problem, is that we don’t know when this is over.”
As the UK retail industry grapples with the fallout from recent far-right riots, the challenges are manifold.
From declining footfall and security concerns to the psychological toll on staff, the sector faces a period of uncertainty.
Yet, with the right support from the government and a strong community focus, retailers can navigate these turbulent times.
As Goodacre concludes, the path to recovery lies in reinforcing the message that high streets are safe and that the retail industry remains a vital part of local communities.
