Assessing the impact of Covid-19 on retail and hospitality

15th Jul

Businesses up and down the country have been adversely impacted by the coronavirus outbreak, with virtually no sector immune to the unprecedented levels of business interruption. Some industries, however, have been impacted greater than others, with the long-term outlook also looking bleak.
The retail and hospitality industries were already facing challenges due to changing consumer preferences, the continued transition to e-commerce, and escalating operating costs. Covid-19, however, has added to these challenges considerably.
As lockdown restrictions ease, hospitality is one of the final sectors given the go-ahead to re-open. While some establishments have been able to transition to offering take-out and delivery options, for the vast majority, this simply cannot compare to a packed venue during a busy weekend.
Pubs have already missed out on the traditionally busy Easter period as well as the two May Bank Holidays during which the UK enjoyed the sunniest calendar month on record, something which would have ordinarily seen beer gardens and high streets packed with revellers.
While pubs and restaurant owners across the country will be keen to make the most of the remaining summer months, the reality may be a slow and staggered return to normality as social distancing and low consumer confidence bite.
With social distancing likely to remain for some time, restrictions on the number of customers a venue can accommodate could make it unviable for smaller premises to re-open.
If you are worried about how your pub, bar, restaurant, or retail business is going to survive the aftermath of Covid-19, you should seek expert help and advice from a licensed insolvency practitioner. They will be able to talk you through your options, allowing you to make an informed decision when taking the next step.
Begbies Traynor, Suite 8B, Marina Court, Castle Street, Hull, East Yorkshire, HU1 1TJT: 01482 483 060 Email: [email protected]

BusinessWorks Hull & East Yorkshire summer 2021

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