Retailers still suffering since Covid, data shows

Data published by the Office for National Statistics (ONS) on Monday shows that the retail industry is still falling short of pre-Covid levels.

“High contact” industries, such as shops and restaurants, have recovered at a slower rate than previously expected.

It was previously estimated that these “high contact” industries would recover to pre-pandemic levels by the second quarter (April to June) 2022, however their output is still below the levels seen in the final quarter of 2019.

The Coronavirus lockdowns seeing many businesses forced to close and restrictions when they could reopen had a huge impact on the sector.

Household spending on “social consumption”, that is, spending on recreation and culture, restaurants and hotels, was also reduced, although the effect this has had was closer to what was expected.

Other research by the ONS showed that while personal wellbeing rose in the year to March 2022, satisfaction levels were still lower than 2019 levels, which may contribute to consumer spending habits.

The War in Ukraine and uncertainty surrounding the UK’s exit from the EU are other factors which have also had an effect on the economy within the last three years, suggesting that Coronavirus may not be the only factor affecting the retail industry.