Coronavirus has had a huge impact on the retail industry with lockdown closures and restrictions proving to be the final nail in the coffin for some businesses trying to survive on an already struggling high street.
Across the UK's retail sector this has resulted in store closures, or, in the worst cases, insolvencies.
Newcastle is one of the areas that has borne the brunt of the pandemic's impact on retail, according to new research by Wholesale Clearance.
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The company found that Newcastle is the second most affected area by retail liquidations during Covid-19, with 33 insolvencies filed between March 2020 and September 2021.
This means that 3.36 businesses shut down out of every 100 in the city.
Norwich ranked number one for the greatest number of businesses who filed for insolvency during the same period, with 8.27 businesses shutting down out of every 100 and a total of 49 insolvencies.
The pandemic's pronounced impact on the retail industry is understood to be a result of several lockdown restrictions throughout 2020 and 2021, as well as the ongoing opening and closing that many non-essential stores had to deal with during the Government’s tier system.
Karl Baxter, managing director at Wholesale Clearance, said shoppers need to support local businesses and the high street to prevent further closures.
"It’s disheartening to see the number of retail and wholesale businesses affected by the Covid-19 pandemic," he said.
“With strict lockdowns forcing temporary closures and subsequent changes to guidelines, this has no doubt devastated a once-thriving industry and put fear into once confident shoppers."
Despite the gloomy figures, Newcastle City Council said that footfall statistics indicate that the city is beginning to bounce back.
A council spokesman said: “Covid and lockdown restrictions have had a severe impact on businesses - not just in Newcastle but across the whole of the UK.
“However, footfall statistics indicate that Newcastle is beginning to bounce back, and we expect trade to begin picking up again in bars and restaurants as restrictions ease.
“City employment has increased significantly, reaching a record high of almost 150,000 in the year to June 2021 – an increase of over 30,000 jobs in the last decade.
“In the last quarter of 2021, over 14,000 new opportunities were advertised for jobs in IT consultancy, healthcare, catering and construction.
"We have also seen very strong growth in other sectors such as digital technology, corporate services and health and life science businesses.
"This, alongside HMRCs decision to bring 9,000 jobs into the city centre and the development of key development sites such as Helix and Stephenson Quarter, will help to increase mid-week footfall to shops, bars, and restaurants
“In response to changing shopping habits, we developed a clear ambition through the City Centre Transformation Programme with a vision to make the city centre cleaner, greener and more attractive for tourism, business, and investment, where local people find jobs and fresh opportunities.
“We are focused on attracting inward investment in key strategic sectors and supporting local businesses by working to link the skills demand with the supply through our reskilling and upskilling programmes.
“Newcastle had a vibrant economy before the pandemic, and we are confident we are beginning to see the green shoots of a recovery.”
Newcastle's Eldon Square shopping centre has also reported that footfall is starting to increase as customers regain the confidence to return to stores.
Bernice Nesham, senior asset manager at Catella APAM for Eldon Square, said: "Eldon Square and its retailers had a busy 2021, with eight new stores opening before Christmas, supporting 33 new jobs in the city.
"The Christmas trading period saw an 85% increase in footfall vs 2020 and footfall for the year was +11% vs 2020.
"We’re expecting this growth to continue in 2022 as more people return to the city centre for work and leisure.
"Since taking over the asset management of Eldon Square in October 2020, APAM have let 12 units with a further eight under offer, as well as retaining 30 other tenants.
"This has all contributed to Newcastle’s job security and economic recovery."
Eldon Square is also due to welcome two new businesses to the shopping centre in the coming weeks – Swatch and The Real Greek Restaurant.
Bernice continued: "We’re looking forward to sharing our exciting plans for 2022, which we are confident will continue to help our retailers, our restaurants and our city to thrive.”
