UK Government Announces Bounce-Back Plans For Retail – But How Many Will Benefit?

Export Minister Graham Stuart MP spoke at Autumn Fair this week to announce a slew of measures aimed at boosting the retail industry in the wake of Covid-19. However, with the focus firmly on encouraging International trade, how many smaller retail businesses will benefit?

Industry Impact Recognised

The announcement acknowledged both the importance of the retail industry (one of the largest private employers in the country) as well as how heavily it had been impacted by the pandemic.

“We recognise that Coronavirus has brought challenges to many industries, not least the consumer and retail sector, where so much depends on face-to-face interactions. This package of support will give businesses the helping hand they need to adapt their methods and thrive in the future.” said Stuart.

Focus on International trade

At the heart of the announcement was the creation of the Consumer and Retail Export Academy, an online learning platform backed by the Department of Trade, and designed to empower retail businesses to reach overseas markets.

As the Government announcement stated, “…the launch of a new Consumer and Retail Export Academy will provide businesses with the critical knowledge, skills and networks needed to increase exports.

E-commerce will be at the heart of the plans, with measures tailored to help consumer and retail businesses develop international, multi-channel, e-commerce strategies fit for the changed retail environment.”

Widening the reach for UK brands

While it is encouraging to see support for the retail industry, what is clear is that these initiatives will be beneficial for some more than others.

Accessing information to encourage retailers to sell overseas will be a boost for those businesses that already have a strong digital presence, and who have high enough profit margins on their products to support the additional costs associated with selling internationally.

More support needed for the High Street

Undoubtedly, the measures unveiled will help a specific sector of the British retail industry. However, what is missing from this announcement is support for the struggling high street.

In particular, retail businesses that predominantly sell products bought from other companies will be operating on an overall lower margin. Adding additional costs associated with shipping Internationally will not be the answer to their post-Covid woes.

For these businesses, would a focus on digital up-skilling overall as opposed to focusing purely on International eCommerce have been more beneficial?

With footfall down and the spectre of further lock-downs looming, there is little in this latest announcement to offer comfort to thousands of independent retail businesses.