In the Viewpoint column of PBM’s May edition, the magazine’s editor Paul Davies discussed the latest developments in relation to the coronavirus (COVID-19) crisis and the impact of Lockdown on the merchant sector.
Please note, as events are changing at such a rapid pace, it should be noted this column was written on April 21. Click here to see all the latest updates on the PBM website.
“From this evening, I must give the British people a very simple instruction — you must stay at home.” The words from the Prime Minister on the evening of 23rd March which changed everything.
Despite looking on at the horrors unfolding in other parts of the world, for the early part of the month, life in the UK continued relatively as normal. Businesses were beginning to take steps to minimise physical interaction and limit non-essential travel in line with the guidance at the time, yet trade counter operations were understandably ongoing in the absence of explicit instruction to do otherwise.
The ‘furlough’ scheme — an unfamiliar word that is now part of the daily lexicon — was announced on 20th March, however it took the Prime Minister’s address a few days later to bring about what has become a disorientating ‘new normal’.
With perhaps an excusable lack of clarity as to how the merchant sector was defined when set against the list of essential businesses allowed to remain open, many swiftly took decisive action to close their doors. ‘Protecting the safety and welfare of staff and customers’ was a common refrain.
Now, almost a month on, a more nuanced picture has developed. Some merchants remain closed for business entirely; others maintain a policy of ‘essential supplies’ only. For many, providing a limited collection service and running deliveries whilst adhering to the relevant safety recommendations has proved possible, with online services ramped up considerably. Business models have transformed almost overnight.
Whatever the intention and capacity to safely keep trading, it is also clear that custom has dwindled — for example, a report from Eureka Research suggests that the plumbing and heating market is “currently operating at about 13% of what it would in normal circumstances, with considerable work being postponed even if it could be carried out within official guidelines.”
With infection rates and fatalities remaining alarmingly high, the long-term economic impact has to be a concern for another day as survival in all senses takes priority.
Trade bodies such as the BMF have devoted considerable resource to ‘intensify support’ for their members. And whilst not without its flaws, the Government has unveiled a considerable support package for businesses — from the aforementioned Coronavirus Job Retention Scheme to a raft of other grants, loans and tax breaks. Please visit www.gov.uk/coronavirus for the most up-to-date advice.
Later in this issue (pages 12-13), we reference a number of sources which we hope will provide further detail on the Government schemes and other areas of business assistance. We are updating www.professionalbuildersmerchant.co.uk and our social media channels each day with the latest critical news, and you can also sign up to receive PBM digitally.
Whilst we’d love to maintain our usual, upbeat tone, we recognise the huge challenge being faced by all the businesses in the sector right now. It is impossible to predict when the situation will change for the better, but change it eventually will — and the services provided by the merchant sector will be vital in the rebuilding of the nation’s economy.
“For many merchants, providing a limited collection service and running deliveries whilst adhering to the relevant safety recommendations has proved possible, with online services ramped up considerably. Business models have transformed almost overnight.”
