Spending in London suburbs 'picks up fast after Covid' but footfall still down in capital's centre

The coronavirus crisis has seen spending plummet in central London with West End venues shuttered and footfall heavily down

Naomi Ackerman @nomiackerman|Jonathan Prynn, Business Editor @JonPrynn

19 August 2020

Spending in London’s suburban town centres is rapidly returning to levels seen before the coronavirus lockdown as residents shun the West End in favour of their local high streets, according to a new study.

It found in two “hubs” — Southall and East Ham — shops and restaurants were busier by mid-July than they had been in January before the pandemic began.

In three others, Stratford, Bromley, and Ealing, spending levels were still 20 to 30 per cent down on pre-lockdown levels, but were quickly bouncing back.

By contrast footfall and spending across much of central London is still 70 to 80 per cent below “normal” with commuters and tourists yet to return in substantial numbers.

The study, from the Centre for London think tank, which produces a quarterly report on the state of the capital, found an “uneven economic recovery” doughnut effect, with central London remaining depressed while suburban high streets recover as Londoners work from home and head out locally.

The West End is one of the worst-affected central London areas

AFP via Getty Images

Researchers found that by mid-July, restaurant transactions were 17 per cent above their January level in Southall, and clothing store purchases up 10 per cent in East Ham.

The report authors told the Standard the shift in consumer spend away from central London to suburban venues is “substantial”, and highlighted that it may “represent a long-term reset”.

Report author Erica Belcher said: “The shift towards those town centre spots is substantial. We have seen the central London economy start to recover, but spending is heavily down.”

Ms Belcher added that researchers are beginning to see a rise in transactions in the capital in their August data, thought to be a result of the Eat Out to Help Out scheme. The scheme, launched by chancellor Rishi Sunak, has seen more than 35 million meals discounted nationwide in just two weeks.

In another sign of hope, Ms Belcher said the report found investment in start-ups, which plummeted at the height of the pandemic, has started "to see an uptick in the past month".

The report found job vacancies in London are rising but are still at just 56 per cent of pre-crisis levels.

MORE ABOUT

covid-19

Read More

Read More

Spending in London suburbs 'picks up fast after Covid' but footfall still down in capital's centre