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Britain poised for recovery as shops and hospitality reopen

by LLB Editor
12th Apr 21 11:17 am

Britain’s economy is poised for recovery as the nation’s lockdown measures ease today and shops, pubs and restaurants finally reopen their doors for the first time in months, sending business and consumer confidence surging with many predicting an economic rebound this summer.

In fact, a recent study by Deloitte found business leaders optimism is at its highest level in 13 years, with the success of the UK’s vaccination programme boosting hopes of a sharp recovery this year. In addition, with shops and hospitality opening their doors once again, the appetite for spending among executive’s has risen at its fastest pace on record and a greater share now expects to increase spending on staff and capital than at any point since 2015.

This boost in confidence has even translated into the appetite among investors to back these sectors, with many having faith that pent-up demand and post-lockdown spending will act as a springboard to recovery for these businesses and will be a catalyst for future growth later this year. With private investors representing a key barometer of where the money is going post-lockdown, this will be welcomed news to businesses within hospitality and retail as they look to capitalise this summer.

Key statistics: 

– 29% of UK investors will back online retail businesses (5,033,000)

– 18% of UK investors are backing the creative industries in 2021 (3,050,000)

– 16% are investing into the hospitality sector (2,741,000)

– 44% of investors are now looking to back UK-based companies, instead of global firms (9,629,000)

– 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed (6,278,000)

Luke Davis, CEO of IW Capital: “As 2021 began under a national lockdown, economists expected that the tight restrictions would have an impact on the economy in the first quarter, but the success of the vaccine roll-out and the reopening of shops and hospitality has given businesses confidence that the UK economy will rebound this year. The re-opening of the economy is sure to help the UK avoid another recession. Pent-up demand and post-lockdown spending will act as a springboard to recovery, playing a key role in the re-emergence of businesses and sectors across the country, and act as a catalyst for future growth.

“UK businesses have shown true resilience throughout the year and we have even seen the emergence of new businesses starting up, which is sure to create some exciting investment opportunities and will play a key role in the nation’s recovery. Investors now need to look towards these businesses in order to enable future growth post-pandemic.

“People want to get out and spend, businesses want to grow and investors want to help them do that, it’s a perfect storm for rapid growth. Pubs will bounce back along with restaurants and other hospitality, no one will want to stay at home after the year we’ve had and I really believe that. Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community. We are not out of the woods yet, but the sun will almost certainly be shining when we are.”

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