‘Working from home is here to stay and retail must adapt’

The sudden appearance at high streets, malls and retail parks of masks en masse rather than among a minority of consumers – in my experience, at least – renders visible that unnerving reality.

The implications for retailers are not yet clear. Will masks build consumer confidence or shake it? Either way, they represent a flashing light that signals the need for vigilance.

That vigilance comes into play too as far as people’s willingness to travel to work goes. Travel hubs such as railway stations and the big city centres that they normally funnel commuters into still lie pretty much deserted – a heavy weight to bear for the many retailers that rely on office and other urban workers for some of their most lucrative trade.

Many have come to the conclusion that pleas to return to the workplace are about ‘saving Pret’ and other businesses that rely on breakfast and lunchtime trade, rather than their own welfare

Retailers operating in London’s West End or other major cities such as Manchester and Leeds should not expect much relief any time soon. Like much of the official communication of late – including on face masks – the message about working from home has been muddled by the government. 

It’s probably done more harm than good. Anecdotally, a seam of resentment seems to have built up among many people, who have come to the conclusion that pleas to return to the workplace are about ‘saving Pret’ and other hospitality businesses that rely on breakfast and lunchtime trade, rather than their own welfare.

And many big companies show not the slightest sign of ordering staff back to their desks. Only this week, banking giant RBS told its 50,000 UK employees that they need not return to offices until next year.

Changing working patterns are evident at retail head offices too. Asda has been a conspicuous exception in ordering HQ staff to spend some time in the office every week from next month. Its grocery rival Morrisons is introducing a four-day office week as standard at its HQ, and those wishing still to work from home can do so unless it is essential for them to come in. Reasons for Morrisons’ changes included enabling a better work-life balance, staff retention and attractiveness as an employer.

Of the pair, it’s Morrisons that looks as if it is more in tune with the times. Offices in many ways are brilliant places. I miss ours and I’m looking forward to going in again, but much less often than in the past.

It has become obvious that many people and roles can be as productive at home as at work. Employers need to find ways to preserve the benefits of the workplace, such as sparking ideas and esprit de corps, while being more flexible about bums on seats.

Many are thinking along exactly those lines, as evidenced by RBS, raising questions about the future shape of retail estates and location strategy. 

It’s possible that the switch in working patterns will open new opportunities. Hotel Chocolat, which updated this week and will meet full-year profit guidance, said that while performance in big-city stores has been hit, market-town locations have done much better – as, of course, has online.

Some shops may take on new leases of life and contribute in new ways, such as by becoming click-and-collect hotspots for online orders 

Some stores once seen as moneyspinners in commuter locations will never reopen, even when the pandemic subsides. The places where people live, rather than where they travel to, will therefore become more important to retailers.

That could be good news for town centres as they seek to reinvent themselves. Some shops may take on new leases of life and contribute in new ways, such as by becoming click-and-collect hotspots for online orders. 

In that context, John Lewis’s delivery tie-up with convenience specialist the Co-op looks like a good move, while M&S’ joint venture with online grocer Ocado couldn’t have come at a better time. Some of its food shops are suffering as a result of new travel patterns, so an online operation takes on even greater importance. 

Retailers have adapted during the emergency. They’ve had to. But that versatility should enable them to adapt once again if necessary to new living and working arrangements. 

The one thing they can’t do is play Canute. They need to be where the customers are.