CACI revealed the significance of workers to London’s retail sector

CACI has provided data showing the negative impact that working from home is having on the retail sales performance in London.

Following the publication of the latest British Retail Consortium/KPMG retail sales monitor, it reported a 3.2 percent increase in retail sales in July nationally.

According to recent research by Morgan Stanley, only around a third of UK workers are back in their offices. Such consumer behaviour has had a significant impact on retail in the capital.

London accounts for 18 percent of the retail and the food and beverages (F&B) sector, and 33 percent of worker spend in the country is from people working in the capital. This equates to 3 billion pounds annually, CACI said.

The average worker spend per location outside London is 64 million pounds, or 24 percent of total spend. Whereas in the capital, the figures rise to 73 million pounds and 41 percent respectively.

Alex McCulloch, director of CACI, said: “Our analysis quantifies the value of workers to the capital and the detrimental impact working from home is having on London’s economy. While retail sales are on the increase nationally, the UK’s longstanding retail and F&B powerhouse is lagging behind by some margin.

“Without a significant return to offices in the capital, operators and landlords alike face an uncertain future that will have a detrimental effect on the UK as a whole,” he added.

Jace Tyrrell, chief executive of New West End Company, commented: “CACI’s latest analysis brings to life just how profound the impact is from the lack of worker spend in our cities, and in particular London. It is crucial we support getting our office workers back safely, but en masse.

“While the Covid-19 crisis has changed how the West End operates, it does not mean we should not be operating at all,” Tyrrell said in a statement.

Photo credit: CACI