* Only 56% of retailers said their business could survive the devastating impact of a second wave in the autumn or winter with widespread lockdowns returning;
* A fifth of retailers (22%) are planning store closures in the next year due to the crisis, with sport and leisure brands the hardest hit with half in this sector saying shops will shut;
* Brightpearl CEO Derek O’Carroll said Covid was like a ‘meteor’ hitting the retail sector and would result in the eradication of many businesses if they did not adapt fast;
* Brightpearl has developed a free online health check to help retailers to gauge whether they are ready for a second wave
More than half of UK retailers have made no preparations for a second wave of Covid-19, according to a new Brightpearl survey.
It found that 54% of retailers have made no changes to their business model in the event of a second wave in the autumn or winter.
The health and beauty sector is the least prepared for a second wave with 75% of companies saying they have made no preparation.
Other sectors failing to adapt to the prospect of a second wave include fashion brands (62% have made no changes to their business model) and entertainment brands (57% have made no changes.)
Overall, fewer than half of retailers (42%) are planning any further digital investment to better prepare their business for future spikes in the virus.
And only 56% of retailers said their business could survive the devastating impact of a second wave with widespread lockdowns returning.
The survey showed big differences in the regional response to the prospect of a second wave.
Eight out of ten retailers in the South West (79%) were geared up for a second wave – the highest figure in the UK – compared to just 21% of retailers in Yorkshire and Humberside, the lowest figure.
The results come from a new survey of 500 retailers by Brightpearl, which provides digital operations solutions for the UK’s biggest retail brands.
Brightpearl has developed a free online health check to help retailers to gauge whether they are ready for a second wave of the Virus.
The Brightpearl five-minute quiz measures whether retailers are fit enough to beat a Covid-19 resurgence by giving them a health grade from A (full fitness) to F (fail).
The survey revealed a huge shift to digital and away from bricks and mortar stores since the pandemic hit the UK six months ago.
More than half of the UK’s retailers (56%) plan to switch their retail focus to online over the next 12 months.
Four out of ten (39%) said their online sales were higher than pre-crisis.
A fifth (22%) said they planned to close physical stores in the next year.
Sport and leisure brands are planning the most closures with 50% saying that shops will shut, followed by electrical firms (36%), fashion brands (30%), and home and DIY stores (25%).
Brightpearl CEO Derek O’Carroll said: “Covid-19 is the retail equivalent of a meteor impact: an existential event that changes the composition of the industry and, sadly, as we’ve witnessed, the eradication of many businesses.
“We’ve seen huge digital transformation in the retail industry in a matter of months as companies look to adapt to the disruption, but the majority simply haven’t had the time to consider and plan for what the future looks like post-pandemic. That’s a dangerous position to be in, especially with the looming threat of a second wave of the virus.
“Our free business health checker has been designed for busy firms to quickly assess the health of their current retail operations. Now, more than ever, it’s vital to take stock and understand what areas of the business need a tune up – its long-term survival may very well depend on it.”
Figures show that more than 3,700 UK firms have gone bust since lockdown began.
Bristol-based Brightpearl’s online tool includes second wave survival tips to retailers depending on their size and whether they sell through Amazon and eBay.
Brightpearl works with thousands of retailers and has been collating data on the common factors behind why brands have experienced success or failure during the crisis – all of which has been distilled into the new tool.
You can try the quiz yourself now at Brightpearl.com
How well are retailers gearing up for a second wave of the virus regionally
Have you made any changes to your business in preparation for a second wave of the virus?
East Anglia 44%
East Midlands 21%
London 63%
North East 37%
North West 48%
Scotland 41%
South East 50%
South West 68%
Wales 25%
West Midlands 50%
Yorkshire and Humberside 21%
ENDS
About Brightpearl
Brightpearl is the number one digital operations platform (DOP) for the retail and wholesale sector. Built to manage the complexity of modern business, the scalable platform offers flexibility to respond to rapid changes in demand and smooth integration with other core operational systems within the organisation.
Brightpearl’s complete DOP solution includes financial management, inventory and sales order management, purchasing and supplier management, CRM, fulfillment, warehouse and logistics. In addition, the solution has high-performing connectors to the major ecommerce platforms, including Shopify, Magento and BigCommerce. Over 1,200 businesses in 26 countries use our platform. We manage over 10m transactions and $3bn of business a year.
Brightpearl is a flexible and agile solution that enables fast decision-making and insights. The platform is designed for retailers and wholesalers to manage the heart of their business easily from one single system. Brightpearl’s configurable automation workflows have measurable time and cost saving impact for our customers, allowing them to focus more resources on growing the business. Our team guides retail businesses through a highly efficient implementation process which typically gets them up and running in less than 60 days – twice as fast as our competitors.
Brightpearl’s US headquarters is in the heart of downtown Austin with a global headquarters in Bristol, UK. You can connect with us on Twitter (@BrightpearlHQ), LinkedIn (linkedin.com/company/Brightpearl), and Facebook (facebook.com/brightpearl).
Media contact:
Mark Hook
mark.hook@brightpearl.com
Nick Ward
Nick.ward@brightpearl.com