Woe for retailers as half of shoppers could stay at home

The scale of the challenge facing retailers opening their doors for the first time since March is laid bare today by worrying new evidence suggesting half of shoppers could stay away.

The exclusive YouGov poll for The Telegraph also suggests that four in ten consumers will cut spending below pre-lockdown levels as the economic havoc wrought by Covid-19 raises fears over mass unemployment.

As non-essential stores begin trading under a strict social distancing regime, the survey of 1,700 people suggests 50pc of shoppers are “uncomfortable” about returning to clothing stores compared with 40pc who say they would be happy to return. One in five respondents say they would be “very uncomfortable” visiting stores.

The findings echo warnings from the Bank of England in May that voluntary social distancing, even after the economy reopens, could hinder a recovery from the worst economic collapse in 300 years. GDP shrank 20.4pc in April alone, an all-time record decline.

YouGov’s survey also found that just 4pc of shoppers intended to spend more than before the lockdown, compared with 41pc who intend to rein in spending. Oliver Rowe, YouGov’s director of reputation and research, said: “There is a lot of work to be done yet to convince shoppers that it’s business as usual.

“Consumer spending has dropped off a cliff in the last three months and with continued uncertainty around the economy and job security, it’s maybe unsurprising that around 40pc of the public say that they’re going to spend less than they did before lockdown.”

The survey also offered worrying signals for pubs, restaurants and hairdressers due to open on July 4. More than half of respondents, 53pc, said they would be uncomfortable returning to restaurants, while 41pc are nervous about going to barbers or hairdressers compared with 38pc who are more comfortable returning.

Some 54pc balk at the prospect of returning to pubs and bars, with more than one in four “very uncomfortable” at the prospect. Women are more likely to stay away than men across all categories, YouGov added.

The British Retail Consortium said its members had been “working around the clock” to return to trading.

Kyle Monk, the organisation’s head of insight and analytics, said: “Evidence from other countries suggests that despite an initial bounce in spending in the weeks after restrictions are lifted, discretionary spend is likely to remain subdued as the coronavirus pandemic wears on. That’s why, with store closures costing an estimated £1.7bn a week in lost sales, ongoing Government support will be critical to the survival of many jobs and businesses.”

Meanwhile, research from consultant Retail Economics and law firm Squire Patton Boggs suggested nearly eight in 10 non-food retailers were considering redundancies to cut costs as Covid-19 crushes sales, with nearly half considering store closures.

Richard Lim, Retail Economics chief executive, said: “ One of the big unknowns is how customers are going to react if there is a gap between their expectations and the reality of shopping. If it’s not pleasurable, because of social distancing measures, they might not want to go back again.”