Shutting up shop: Europe’s retail sector reeling as Dutch Prime Minister Mark Rutte ordered a snap … [+]
The ghost of Christmas past is haunting Europe’s Main Streets this week, as the continent’s governments move towards lockdowns or warn of likely stricter measures to come in the midst of the latest pandemic wave.
From another snap lockdown in the Netherlands to stricter travel restrictions at the height of the holiday period, especially for those wishing to travel from the U.K., the news is painting a bleak picture for the retail and hospitality sectors.
On Sunday, the Netherlands went into a sudden lockdown after a surprise announcement by Prime Minister Mark Rutte that decreed that all but essential stores would close as of yesterday. The new rules will remain in place at least until Jan. 14.
Tightening restrictions in Germany, Italy, Spain and the U.K. – where the Health Minister Sajid Javid is refusing to rule out tougher restrictions before Christmas Day – have decimated footfall during a crucial trading week for the industry.
Indeed, Dutch city and town centers were largely deserted on Sunday as the country began a snap lockdown aimed at checking an expected Covid-19 surge caused by the fast-spreading omicron variant, but which has ripped up retailer’s Christmas plans.
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Prime Minister Rutte ordered the closure of all but essential stores, as well as restaurants, hair salons, gyms, museums and other public places.
German Restrictions Already Hitting Retailers
Germany has designated the U.K. as a virus variant area from today, the highest risk category, requiring incoming travellers undergo a mandatory 14-day quarantine, regardless of vaccination status.
The tighter restrictions Germany had already introduced to try to limit the spread of Covid-19 have put people off in-person shopping the country’s association of retailers (HDE) said, with sales in bricks-and-mortar non-food retailers down an average 26% compared with 2019, according to a survey of 1,600 firms.
Germany’s retailers and hospitality sectors have been hit hard by restrictions introduced last … [+]
Apparel retailers have been particularly hard hit, with sales down 35% on pre-crisis levels, and visitor numbers to city center shopping districts have plummeted by 41% compared with 2019. German officials have mandated that unvaccinated people will be barred from all but essential businesses such as grocery stores and pharmacies.
The HDE is calling on the government to provide more financial support to retailers and chief executive Stefan Genth said in a statement: “The introduction of stricter coronavirus measures in shops is a dramatic disruption. Retailers had placed their hopes on the Christmas business. But now many retailers are once again moving closer to the precipice with each passing day: a disastrous outlook.”
According to HDE estimates, sales losses in the non-food retail sector could total $6.22 billion in December.
U.K. In “Stealth Lockdown”
Meanwhile, U.K. scientific advisers have told the government that new measures are needed within days to protect the health care system, with Javid conceding that there are “no guarantees” and conceding the possibility of a so-called circuit-breaker lockdown.
However, with a work from home recommendation in place and people clearly spooked by the possibility of missing out on meeting family for Christmas, the U.K. has effectively entered what many are claiming is a de facto “stealth lockdown” that has decimated footfall and left restaurants facing mass cancellations.
New West End Company reported footfall in London’s retail heartland down 5% on the previous week and 19% down on the same week in 2019 and called on the U.K. government to provide financial support to struggling businesses.
Footfall in London is falling away during a “stealth lockdown” across the U.K. (Photo by Dan … [+]
Neighbouring Ireland’s chief medical officer has also refused to rule out new restrictions if the omicron variant continues to spread. Prime Minister Micheal Martin on Friday ordered bars and restaurants to close by 8pm and limited attendance at certain events.
France banned entry for many Britons from 11pm last Friday, and is also curbing outdoor celebrations on New Year’s Eve. The French government is also ramping up the pressure on people to get vaccinated, and from January only immunized people will be able to get a “health pass” that provides access to bars, restaurants, medical facilities and cultural venues.
More stringent measures could yet be introduced, with Spain set to convene an online emergency meeting on Wednesday to analyze the evolution of the pandemic and discuss new measures, while some regions are already requiring proof of vaccination to enter restaurants and bars.
Likewise, on Thursday Italy’s government will hold an emergency meeting and is thought to be considering options such as requiring masks outdoors, shortening the validity of vaccine certificates, and possibly requiring inoculated people as well as the unvaccinated to take Covid tests to access large events.
