One in five retailers planning to move away from major city centres into local high streets in next 12 months, according to new research.
New data has highlighted that one in five retailers are planning to move stores out of major city centres and into local high streets in the next 12 months.
Ecommerce operations provider, Brightpearl found that 63% of consumers claim they will shop more locally going forward, prompting the relocation plans.
The research predicts a 67% drop in city centre retail footfall over the next year, reported The Industry.Fashion. In light of this trend, retailers told Brightpearl they will have to drastically adapt their own models.
While 18% plan to move stores from major city centres, another 40% are undecided whether to follow suit.
In addition, Brightpearl’s research also found that 24% of retailers are planning to close physical stores in 2021, with 30% of fashion brands saying they expect to close stores this year.
50% of sports and leisure brands are planning to close stores, while 25% of home and DIY and 36% of electrical retailers will be doing the same.
However, 62% of retailers expect ecommerce to fare much better than the rest of their business over the next 12 months. 6 in 10 retailers are planning to switch their focus primarily online, while a third (37%) plan to launch a new website or introduce new ecommerce channels this year to attract more online shoppers.
The Brightpearl survey polled 1,000 retail brands and 2,000 consumers from across the country to identify how retail is transforming in 2021 as a result of the pandemic.
65% of Brits are now buying things online more than normal, with 8 in 10 shoppers (81%) expected to increase online purchasing over the next 12 months.
Almost half of shoppers (45%) are now buying things online that they only previously bought in-store and 38% of buyers are less likely to shop in-store than they were before COVID. 55% of consumers said they will use Amazon more in 2021, although 30% said they do feel guilty about abandoning physical stores in its favour.
“Customers have relocated online of course – but they’ve also relocated to the suburbs and the rural towns and that’s reflected in our emerging shopping habits,” said Derek O’Carroll, ceo of Brightpearl. “Retailers need to respond to these changes and our data suggests many are already making plans to move stores to high street locations with increasingly strong foot traffic.”
He added: “Our study shows some big shifts as our work-at-home patterns intensify. Over the next year, retailers are going to have to up their digital game to meet growing online demand, and the expectations shaped by our new buying patterns.”
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