Comment: Ramifications of work-from-home
Much has returned to normal since Covid-19 brought about death and disruption but one thing that continues to have a serious impact is the flexible working patterns that employees have come to expect post-pandemic. The work-from-home phenomenon continues to have ramifications for retailers.
It is in fact a double-whammy for retailers because not only do they have to contend with sensitively handling their employees’ new ways of working but also the way WFH has dramatically shifted the patterns around leisure and shopping.
The desire for companies to have employees back in the office more often seems to flare up with great frequency. In recent weeks we have had JD Sports state that it expects its people to be back in the office four days per week. THG has been more vigorous with its announcement that it is to end flexible working and has demanded that staff are in the office five days per week.
Meanwhile, Manchester United stated its position on the matter via an iron fist in a silk glove approach when it offered employees who wished to work remotely a cash bonus to resign. The underlying message being that you either return to the office full-time or you’d better hand in your notice.
These actions seem harsh but the argument put forward by many companies has been that WFH adversely impacts group culture and decision-making processes. It has also been pointed out that productivity in London has been dragging down the country’s overall output numbers because of the ongoing resistance by the capital’s workers to accept the drudgery of the commute five days per week.
No doubt these are key reasons why in a recent survey from NCG it was found that 59% of UK business decision-makers say they expect in future that their employees will be spending more time in the office than they had been doing over the past year.
This is clearly a sensitive situation and retail managements will have to tread very carefully when dealing with their employees but I suspect they know the direction of travel with WFH. Certainly for major landlord British Land the dilution of the phenomenon is evident in office occupancy levels across its UK-wide portfolio. It has stated that in the middle of the week offices are now as full as before the pandemic and are also starting to get busier on Mondays too.
This gradual return to the office is also being reflected in the trading patterns on the high street and in shopping malls for retailers and hospitality companies. Pub companies Fuller’s and Young’s have both stated in recent weeks that their urban sites are performing the strongest as a result of a return to the pre-Covid-19 patterns of work and play by a growing proportion of the adult population.
As the WFH scenario continues to play out it will have various knock-on effects for retailers who clearly need to be politically aware, sensitive to employees’ requirements, and also fleet of foot in order to react to the constantly changing patterns of shopper behaviour. We can therefore conclude that there is absolutely no let-up in the challenges facing the industry. No change there then.
