London retailers gear up for a return to the high street amid boost in confidence
Over half of London retailers are gearing up for a return to the high street in what is seen as a sign of positive momentum for the recovering retail sector, a new study has revealed.
Some 55 per cent of London retailers have said they plan to open at least one new bricks and mortar store this year, according to a new American Express study shared exclusively with City PM
The optimism comes during a time when renting costs and tough economic conditions have put a damper on the high street in recent years, with over 2,000 retailers going bust last year.
Data from the ONS reveals that retail sales fell by 3.2 per cent in December 2023, their sharpest monthly decrease since January 2021, highlighting the impact of low consumer spending on retailers.
The number of e-commerce insolvencies also reached its highest level in five years, topping 615 in 2023/24, an increase on the 521 insolvencies reported in the previous year.
However, today’s Amex survey of 500 UK retailers highlighted that 80 per cent have expressed a sense of confidence in customer attraction and retention — with 82 per cent of London retailers alone preparing for growth.
Dan Edelman, general manager, UK Merchant Services at American Express, said: “Our research reveals an optimism among UK retailers, with an appetite to invest to tackle the ongoing challenge of attracting and retaining customers.
“This comes with a recognition that, in a competitive landscape, retailers need to utilise all the channels available to them to build connections.”
The research highlights other key priorities this year, including the need for e-commerce enhancements and online marketing techniques, with 34 per cent of London retailers planning to ramp up their online presence.
“It’s encouraging to see that a bricks and mortar presence remains key, in tandem with driving online growth, to create those customer experiences that encourage spend and lasting loyalty,” Edelman said.