Mark Sweney 

UK retailers hit by supply disruption amid coronavirus concerns

Report shows half of shoppers would consider buying more goods online if virus persists
  
  

Shelves are left empty in a store after customers stock up on hand sanitisers.
Shelves are left empty in a store after customers stock up on hand sanitisers. Photograph: Andy Rain/EPA

Almost a quarter of British retailers are reporting severe disruption to their supply of goods as a result of the spread of coronavirus.

News that retailers are starting to struggle to maintain supplies of some products came as a survey found that one in 10 people have already started stockpiling food because of fear of an outbreak in the UK.

A survey from the consultancy Retail Economics found that 24% of British retailers – ranging from food and fashion to health and beauty – said supply chain disruption was having a significant impact on their business. However, only 7% said they had enough flexibility in their supply chain to be able to switch suppliers.

The report also highlighted the potential impact on British retailers and consumer behaviour if the coronavirus continued to spread.

The report found that almost half (45%) of the 30 retail companies questioned in the survey have already seen a negative impact on sales, while three-quarters of retailers expect to see a sales decline if the virus persists.

Beyond avoiding overseas travel, 15% of those involved in a separate UK household survey by Retail Economics said they were avoiding public transport. Almost a quarter (23%) are avoiding contact with other people, while 9% are shunning restaurants and entertainment destinations such as cinemas.

If the situation worsens, a third say they will consider avoiding public transport, with almost 30% stopping going to restaurants and cinemas and a quarter avoiding shopping destinations.

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As a result, the report, conducted in conjunction with the law firm Squire Patton Boggs, says online retail could benefit significantly. The report found that half (49%) of shoppers would consider buying more goods online to avoid physical shops if the virus persists.

However, half of the 2,000 consumers questioned also said they would try to avoid buying online from international sellers that ship products directly from China, the centre of the coronavirus outbreak and the worst-hit country.

The online supermarket Ocado has already advised customers to place orders further in advance than usual because of “exceptionally high demand”. It said: “More people than usual seem to be placing particularly large orders.”

Amazon has moved to remove “tens of thousands” of listings by “bad actors” who are attempting to cash in on coronavirus fears by raising prices of masks and sanitisers by as much as 2,000%.

 

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