CACI has published a report highlighting the impact of Covid-19 on the Retail and Property sectors. The data is based on a consumer survey of 1,000 UK shoppers undertaken March 14 - 15 by CACI and Research Bods.

A summary of key findings are as follows:

Despite being more at risk older groups are less likely to have moderated their behaviour as a result of the outbreak; compared to those aged between 25-34 the most likely.
Londoners and the Northern Irish are most likely to have changed behaviours; reflecting the more advanced stage of the pandemic in London and the greater proximity to actions in Ireland for the Northern Irish.
The biggest winners are local shops and retailers which offer online shopping, with more than half of consumers expected to increase their engagement in both channels.
Regional shopping centres, outlet malls and tourist destinations will be impacted the most as shoppers believe crowds and retail stores are unsafe at the moment.
The impact of the virus is likely to accelerate underlying consumer trends including; increased digital and social engagement; rising localism and local delivery; and a greater connection to community.
These evolving consumer trends will in turn accelerate industry trends such as; the merging of physical and digital; the growth of the online halo effect; and the changing role of the store to connect the brand and customer.
The sector has the opportunity to capitalise on the rapid changes with retailers and landlords working together to deliver a cohesive community led offer, as well as a mutual sharing of the risk. This would be a much-needed restructure of lease agreements to reflect the true role of the store.
When the restrictions lift 70% of shoppers believe they will return to previous patterns of behaviour, with 5% planning to increase their spend. However, their entrenched visit patterns will have been broken and there will be a chance for retailers and landlords to capitalise on the opportunity this presents. They will need to understand their shopper, gap and opening to do so.

Commenting on the research, Alex McCulloch, Director of CACI Property Consulting Group, said: “Our findings reflect that, despite the extraordinary times we are in, people are focused on coming out the other side. Our report is evidence that although the older groups are more at risk, they are less likely to have moderated their behaviour, compared to those aged between 25-34, with Londoners and the Northern Irish most likely to have changed how they live their lives. This is likely to be a result of London being more densely populated, and reflecting the more advanced stage of the pandemic in the capital, and the greater proximity to actions in Ireland.

“At these early stages with government restrictions being put into place across the country, it can be difficult to see a positive light at the end of the tunnel, however, this is also a time of opportunity with the biggest winners being local shops and online shopping. The property and retail sector has the opportunity to capitalise on the rapid changes. Retailers and landlords should be working together to deliver a cohesive community-led offer as well as sharing the risk. When restrictions lift, the industry needs to listen and adapt to changing consumer trends; 70% of shoppers believe they will return to previous patterns of behaviour, while 5% plan to increase their spend.”

Read the full report here: https://tinyurl.com/caciinsight

CACI reports on the impact of COVID-19

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