COVID-19 UPDATE

FOOD-TO-GO ‘TO DECLINE BY £6BN’ THIS YEAR

NEW RESEARCH SUGGESTS THE FOOD-TO-GO MARKET WILL TAKE ABEATING THIS YEAR, BUT WILL RECOVER BY 2022.

The UK food-to-go market is set to decline by £6bn in 2020 because of the coronavirus pandemic, according to the new Lumina Intelligence UK Food-to-go Market Report 2020 Update. However, the report forecasts that turnover of the food-to-go market will recover to close to its 2019 level by the end of 2022.

The UK food-to-go market experienced a decade of growth through the 2010s with Lumina Intelligence valuing the market at £21.3bn in 2019, a growth of +2.4%. However, the catastrophic impact of the coronavirus pandemic is set to wipe £6bn off the market value in 2020. This equates to a decline of 29%, taking the market value to £15bn.

The average number of food-togo visits per consumer per month has dropped 25% year-on-year with lunch the most impacted daypart with a fall in frequency of 37%.

Despite a significant reduction in value this year, the food-to-go market is set to recover quickly due to its versatility, low contact and value-led proposition.

LATEST RESTRICTIONS OUTLINED

WIDE-RANGING NEW RESTRICTIONS HAVE BEEN ANNOUNCED IN THELAST 24 HOURS TO ATTEMPT TO STOP THE SPREAD OF CORONAVIRUSAND PREVENT A FULLY-FLEDGED SECOND WAVE – AND THEY COULDREMAIN IN PLACE FOR SIX MONTHS.

A series of new restrictions have been put in place to attempt to prevent the spread of Covid-19 and avoid a full-scale second wave. Prime Minister Boris Johnson has warned that the new measures would probably stay in place for the next six months.

The latest changes in England include:

Pubs, bars and restaurants to close at 10pm

Table service only

People should work from home wherever possible

Face masks compulsory for nonseated customers and shop workers, among others

Plans to allow fans to return to sporting events paused

Fines for not wearing masks or following rules increased to £200 for first offence.

The latest changes in Scotland include:

Pubs, bars and restaurants to close at 10pm

Fines for not wearing masks or following rules increased to £200 for first offence

Visiting other households no longer permitted. Exceptions include people who live alone or alone with children who can form extended households.

Outdoor meetings with one other household in groups of up to six, including in private gardens.

Young people aged 12 to 18 will be exempt from the two household limit – they will be able to meet outdoors in groups of up to 6.

Schools, colleges and universities will remain open.

The Scottish Government now advises against car sharing for anyone not from your household.

FOOTFALL ‘NOT AFFECTED’ BY RULE OF SIX

New data from Springboard has shown that footfall to UK retail destinations was up by 2.4% last week over the previous week, despite the government’s new ‘rule of six’ coming into force.

High street footfall was up 5.2% while footfall in shopping centres and retails parks declined by 0.8% and 0.3% respectively.

Despite this, year-on-year footfall is now down 28.7% in total and 34.3% in high streets.

FURLOUGH EXTENSION ‘COULD SAVE THOUSANDS OF JOBS’

The Scottish Government has said extending the furlough scheme by eight months could save 61,000 jobs north of the border. A government report put the direct cost of extending the furlough scheme in Scotland to June at around £850m – and wider economic benefits, such as increasing GDP, mean that it could pay for itself.

Scotland’s Economy Secretary Fiona Hyslop (pictured) commented: “The UK Government must think again about withdrawing blanket support and they must urgently implement some form of extension which would continue to provide help for the sectors that have been most heavily affected.”

AMAZON SCOUT ROBOT COMING TO UK

Amazon has confirmed that its Amazon Scout robot delivery vehicles are being developed for use in the UK.

The company is developing software to help Scout delivery devices “safely and autonomously navigate around pedestrians, pets and obstacles found in residential neighbourhoods such as recycling bins and sign posts”.

The six-wheeled delivery robot was unveiled last year and has been undergoing field tests in the US. In the UK, the devices will autonomously follow their delivery route, initially accompanied by an Amazon Scout Ambassador.

SAFETY FIRST

New research from retail app Ubamarket has found that safety is a key driver for shoppers today with 50% of Brits not having used cash at all since the start of lockdown and have relied exclusively on card and contactless payments. Additionally, 43% want their shopping experience to require as little human interaction as possible.

VAT CHALLENGE

Businesses that deferred paying their VAT bills should be allowed to spread their repayments into the middle of next year, says tax adviser Blick Rothenberg. HMRC are now reminding businesses that repayments must be made by 31 March, even if firms can’t trade their way out of their current financial predicament.

MOBILITY MAX

Data from the week ending 13 Sep by CACI has found that mobility across the UK reached 82% of pre-Covid levels, the highest since lockdown began. The peak coincided with the return to schools and a wider return to offices, although new restrictions this week are likely to stymie any further growth.