Leicester's coronavirus lockdown extension leaves businesses assessing the impact

Businesses are scrambling to assess the impact of a local lockdown on Leicester due to a surge in Covid-19 cases.

The East Midlands city has experienced a spike in infections in recent weeks and current lockdown restrictions are expected to be extended there for a further two weeks, meaning pubs, bars, cinemas and restaurants will remain shut instead of being allowed to open on Saturday as planned.

Government is also understood to be considering tougher measures including the closure of non-essential stores that opened only two weeks ago and possible travel restrictions to prevent the spread of the disease. This could have an impact on the large Fosse Park retail park to the south of the city, home to a string of chains including Next and Primark.

The area’s status as a key manufacturing and logistics hub for the country could make the extended lockdown an issue for businesses, with staff absenteeism due to the virus a potential problem.

Independent retail analyst Nick Bubb said: “A renewed lockdown would be bad news for the already hard-pressed UK clothing manufacturing and footwear industries based in Leicester.”

Leicestershire is also home to large offices for listed retailers including Next, Dunelm and Shoe Zone.

Bosses at Next this morning discussed the impact of the local lockdown on its Enderby site but decided not to change operations there.

The head office typically houses 3500 staff, and 500 have returned, working on a rota basis to ensure distancing measures. This situation will continue, despite the local lockdown.

It is understood Dunelm, which is headquartered in Syston, will also not be affected by the lockdown extension as employees are still all working from home.

The logistics industry was also taking the development in its stride. Natalie Chapman, head of urban policy, at the Freight Transport Association, said: “We will need to understand the full scope of what a lockdown in Leicester would look like, as the region is a key logistics hub for not just the East Midlands but the rest of the UK.