As businesses have gotten to grips with the impact of the Covid-19 pandemic in the UK through 2020 and many have been forced to pivot and adapt in order to survive, while some have been unable to see out the storm so far, the businesses that have managed to keep their heads above water can afford to be optimistic about the future. That is, according to Lolly Lee, the managing director of UK PTMD importer The Orangery Collection.
The Orangery Collection is a collection of lighting, pots, glassware, furniture, textiles, artificial flowers, candles, diffusers, and decorations, and it is a small business which enjoys links with 2,000 other businesses across the UK and Ireland. Having reached out to the businesses on its books shortly after the full lockdown began to ease, Lee said that she was encouraged by how well they have innovated and adapted in order to ensure they can continue to run, which has given her real confidence about the wellbeing of small businesses for the future.
Speaking to the Leaders Council’s Matthew O’Neill, Lee said: “The last few months have been a rollercoaster and things have changed considerably for all of us. What I have seen in my leadership of a small company is remarkable. We regularly work with 2,000 different businesses, be they florists, garden centres, independent boutiques, gift shops, hotels cafés, interior designers, architects, event planners, the list goes on. So when we came out of lockdown, I decided to go on a country tour and listen to people’s stories and see if I could advise businesses on how to adapt and give them confidence based on how we’ve gone about it, because I have such an overview working with multiple businesses and they know I will be honest with them.
“Unfortunately, I have not been able to travel to Ireland as of yet, but I can report that out of my 2,000 customers on my books, everyone has adapted well, only five have one out of business. We are so pleased about how well people have adapted and the amount of innovation that has gone into these businesses receiving customers and continuing trading because they want to succeed. These are companies that are predominantly independent and are investing their own money. I felt very enthusiastic for the future when I saw how everyone has adapted to the new changes without fuss.”
While it is common knowledge across the retail industry that footfall has decreased on shop premises, Lee had more positive news to share in that the Covid-secure requirements to allow customers to enter shops had inadvertently led to some advantages.
Elaborating on this, Lee explained: “Businesses have had to adapt, whether they are hotels or retailers, to be able to have customers enter and exit safely. I have always studied product positioning and signage and how customers enter premises and where they tend to look. Having asked our customers about what they had seen post-lockdown, the basket spend for everyone’s average customer is actually up because instead of being able to go where they want within a shop, Covid-secure procedures now force them on a one-way route around the whole shop and they are now exposed to more products and buying more. Even though overall footfall is down, the takings for some businesses is up.”
Introducing a one-way system around a store is something Lee can envision retailers looking to adopt in a different manner when Covid-19 restrictions do eventually cease to retain these benefits.
“I can see this trend being exploited in future, absolutely. Aesthetically, however, the existing Covid-secure signage used to get that traffic flow of customers going is quite ugly and intimidating, but if retailers can begin forcing this route in a more positive aesthetic and even subliminal way, maybe they can get more people in walking around the whole shop and this could be a major positive for the sector. For instance, I’ve been advising people on getting people entering the shop and then going to the left of the entrance to start their one-way lap around, because psychologically it is more comfortable for people because we drive on the left of our roads.”
Despite the beneficial aspect of the new regulations, there are some aspects of the customer experience that is affecting retailers more adversely and Lee believes that both the sector and the government could have a role to play in easing the issue.
She said: “The customer experience has changed out of necessity. Even though people have to go around a whole shop now, browsing time is a lot shorter because with restrictions on capacity people feel they have to go in and get out quickly. The cafeteria experience is also different in that people do not go in and stay as long after finishing their food and drink, and whereas some people might be tempted to sit in and work from their computers, this does not happen anymore.
“I think the best way to deal with this from a retailer’s point of view, because it looks like these restrictions will remain for some months, is to explore ways to make plastic screens, boards and signage more aesthetically appealing and less intimidating to calm people down. A clear and consistent message from government outlining that entering shops and cafes and remaining there for a prolonged period is considered safe would also be a helpful thing to keep people calm and allow them to immerse themselves back into the retail experience more.”
When asked about what she envisioned for the future of retail, Lee said that she felt that business could be optimistic for the future and that there will be opportunities for young entrepreneurs to freshen up the UK’s high streets when some businesses do unfortunately fail.
“If there is not another full lockdown, I feel businesses will see themselves through a second wave. Hotels could be in for a rocky ride but many businesses I know of will come through. If they were going to go to the wall, they would have done so already. I have spoken to all of them to ensure they are mindful of the future and putting funds aside and they are all doing so and being prudent.
“Everyone is holding back by not recruiting and not extending their business because they want to take a cautious approach. I am hopeful of their ability to survive local lockdowns, but if hotels are forced to shut entirely there is little they can do without government support, so that will be something that could be required again to prop-up businesses.
“As for national retailers, I feel that Covid has sadly tipped them over the edge. They were already on the wobble and had a very ‘copy and paste’ approach in their physical set-up and had become boring for customers. If these businesses do fail, I am hopeful that it will create new opportunities for entrepreneurs in the sector to take advantage and business in this country will continue to thrive.”
Meanwhile, during this week’s Prime Minister’s Questions in Parliament, Boris Johnson was pressed by Labour leader Sir Keir Starmer to publish the scientific evidence behind the decision to introduce a 22:00 closing time for hospitality businesses.
Sir Keir said that the public “deserved to know” the justification for the measure and called for a review if the basis for the restriction was deemed insufficient.
Johnson said that the measure was brought in to curb the spread of Covid-19, on a day where the two leaders disputed how effective national and local lockdowns had proven to be.
Sir Keir said that the PM had been incompetent in his management of the pandemic, while Johnson hit out at Labour for initially supporting the newest raft of restrictions and now seemingly was changing its position.
The 22:00 curfew for hospitality venues in England has been in place since September 24, to try to crack down on rising Covid-19 cases, and ministers claimed that it has had a “beneficial” outcome.
However, the move has stoked dissent on the Conservative backbenches because of the adverse effects it is having on Britain’s beleaguered hospitality industry, and it is likely some may withdraw their backing for the curfew and the rule of six regulation in Commons votes next week as MPs seek to secure more influence over emergency Covid-19 measures.
The government’s rule of six survived a vote in Parliament this week, but after Labour MPs abstained along with 62 Tories, the number backing the government was less than half of MPs overall.
Greater Manchester mayor Andy Burnham and London mayor Sadiq Khan have also raised concerns over the curfew after it caused large crowds to form outside hospitality venues in city areas immediately after closing time, which could increase the risk of transmission.
At PMQs, Sir Keir questioned the logic behind the curfew, saying: “One question is now screaming out. Is there a scientific basis for the 22:00 rule? The public and Parliament deserve to know.
“If there is, why does the government do itself a favour and publish it? If not, why does the government not review the rule?"
Johnson responded: "The basis on which we set out the curtailment of hospitality was the basis on which he accepted it two weeks ago and that is the reduce the spread of the virus and that is our objective.”
The fact Labour’s MPs were instructed to abstain in this week’s Commons vote on maintaining the rule of six prompted the PM’s attack on the party’s supposed change in stance.
He asked: "What kind of signal does this send to the people of the country about the robustness of the Labour Party and their willingness to enforce the restrictions?"
Calling on the government to be honest with the public about the effectiveness of local lockdowns after data suggested that cases were climbing in 19 of 20 areas under local restrictions, Sir Keir told MPs: "The prime minister really needs to understand that local communities are angry and frustrated.
"The prime minister can't explain why an area goes into restrictions. He can't explain what the different restrictions are, and he can't explain how restrictions end."
Johnson insisted that the local lockdowns and measures in place nationally were necessary to crack down on rising cases in different areas of the country.
He explained: "The local and regional approach, combined with national measures, remains correct because two thirds of those admitted into hospital on Sunday were in the North East, North West and Yorkshire."
Elsewhere, Scotland’s first minister Nicola Sturgeon has announced that all pubs and restaurants within Scotland’s central belt will be required to close from 18:00 on Friday, as part of new measures aimed at tackling rising cases there.
Other areas of Scotland will be able to have their pubs and restaurants open but will have to close their indoor premises at 18:00. Alcohol will only be permitted to be served outdoors throughout the day, with beer gardens and outdoor settings allowed to remain open until 22:00. The rule of six will remain in place throughout.
Photo by Nick Fewings on Unsplash
