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  1. April 2020

  2. London and the 'New Normal'

    3 April 2020
    There is consensus that the current world situation will lead to a reshaping of the way we live globally and, of course, this extends to the way in which we’ll shop.
    Prior to the pandemic, it was thought that the UK’s propensity to shop online had plateaued with the web accounting for around a quarter of our total retailing spend. The picture was pretty much the same with food shopping with online accounting for around 7% of UK supermarkets’ total revenues. However, the new habits formed in the past few weeks and in the months to come may change those proportions.

    In a survey of more than 2,200 marketers conducted by Econsultancy and Marketing Week last week, 71% of UK marketers predicted that there will be an increase in ecommerce usage as a result of coronavirus. A substantial number people who were previously reluctant to shop online for whatever reason have been compelled to do so and will form habits that they do not relinquish in future.

    But if this is the general retailing landscape, what will the legacy of the pandemic be for London? Well, of course, the immediate impact has been profound as social distancing remains the key weapon in fighting the spread of Covid-19.

    However, looking further into a future when there will be respite from these measures, London will remain the ultimate experiential shopping city. Its blend of high fashion, street style, heritage and innovation is unmatched in the world and that will not change. The challenges in the medium-term will be around who is able to come and shop in London. It has for decades been a focal point for international tourism and, in that context, a resumption in global air travel will be key to bringing shoppers back.

    Whilst London’s high-end, luxury retailing streets will retain their cachet and attraction, the shops serving the middle-market will have to redouble their efforts – especially if the impact of the pandemic on the economy means more muted consumer spending. In order to woo shoppers, brands will need to use all their ingenuity to revamp their offer at accessible price points.

    The pandemic is also changing the way we think about our lives and the world we live in. as we head towards the ‘new normal’, the rise of ethical, socially responsible brands will accelerate, and London will have to explore how it can meet people’s hunger for experiences and excitement as millions come out of self-isolation.

    Author:
    Matthew Thompson
    Matthew.Thompson@colliers.com
    +44 20 7344 6817