Retail is in Crisis, but Small Business Might Still Thrive
by Clara Buckens
Post-lockdown, the retail sector is struggling. Consumers are opting for a more personal shopping experience, giving small and independent business an edge.
In-store retail returned on the 15th of July, albeit with restrictions in place. Despite the long queues reported at Fast Fashion retailers such as Primark, the sector is not expected to recover to pre-lockdown sales soon. PwC has projected 25% lower clothing sales than pre-COVID levels, and a British Retail Consortium (BRC) survey shows most retailers expect significantly lower sales than this time last year.
A study by Validify and the BRC has shown that in a post-COVID world, retailers should prioritise personal communications with consumers and work to integrate in-store and online channels. Independent stores are well placed to do this. During the lockdown, local commerce was valued by consumers for being both practical and personal. “It was the first-time customers thought there are people behind these brands – that independent boutique actually has a person behind it,” says Rebecca Morter, CEO of independent retailer Lone Design Club (LDC). LDC champions personal communications by engaging in dialogue with its customers and connecting them to its team; they have adapted their shopping experience by allowing pre-scheduled try-on appointments for selected pieces. This direct communication works two-fold: the consumer is less desensitised towards the people behind their clothing, and the retailer better understands demand.
As says Rebecca, “before the pandemic the high street needed reshaping and rebirth; […] coming back to slower fashion and conscious consumption, but also creating experience”.
Most high street retail relies on the Fast Fashion model, which is intrinsically wasteful, exploitative, environmentally damaging and impersonal. This has mainly come to light during the lockdown as brands amass unsold stock and fail to pay for their orders. Furthermore, most Britons are increasingly concerned with their clothing’s human and environmental footprint and hope for a green economic recovery. If independent and local brands can engage with consumer concerns, with their relatively small operations, they may be best placed to adapt to the changing economy. On a large scale, this could slow down the fashion industry to a more sustainable pace.
However, cautious optimism is in order. Efforts to re-stimulate the economy by encouraging citizens to shop alongside big high street sales could hinder both a green economic recovery and small business. “Big retail went on sale so quick, so heavy, and that’s going to take a toll, it’s not going to help move towards more sustainable or conscious consumption,” says Rebecca. Additionally, we can’t ignore that prices in small, independent stores, while fair, are not accessible to the majority of people. Nevertheless, the lockdown has seen the conversation on the fashion industry take strides. People care more about the community and crave spaces, experiences and services that reinforce it. Amidst this, independent shops are ever more relevant and likely to thrive.