Chancellor Rishi Sunak
(Picture: PA Wire)Much of the focus this week has been on the devastating impact of Omicron restrictions on bars and restaurants, and rightly so. But it is a disaster for shops too.
Christmas is the crucial trading period for most retailers and, while data out today shows festive trading got off to a good start, momentum is fading faster than a Norwegian fir in early January.
Omicron is keeping people indoors and inflation is eating into the money in their pockets. Understandably, consumer confidence is dropping.
Many bars and restaurants are taking the decision to close early for Christmas and hibernate. Shops are unlikely to do the same: most will cling to the hope that more present buying is on the way, however misguided this hope may be.
Retail businesses tend to fail in January when the coffers are at their fullest point for the year and lenders call in their debts. We can expect a wave of insolvencies in a month’s time if the government provide support for the sector soon. Rishi Sunak must add shops to his bailout list.
The Chancellor is already dragging his feet when it comes to bars and restaurants. He is only just holding talks with the industry today, a week after restrictions came in. If he moves at the same pace with the retail sector, any support - if it does ever arrive - will come too late.
