With strikes hitting rail, mail and ports, retailers face another challenging summer – but they have the resourcefulness and people to adapt to the turmoil, says George MacDonald

How quickly the high aspirations and ideals galvanised by the pandemic have turned to ashes.

Talk of respect for key workers, common purpose, levelling up and setting the foundations of a vibrant economy post-Brexit have gone up in smoke.

Instead, there is a return to 1970s-style industrial unrest and rigid, ideology-driven politics divorced from the pressures bearing down on consumers. That means yet more of the proverbial ‘challenging’ conditions for retailers.

Felixstowe container port

Felixstowe, the UK’s busiest container port, will shut down for eight days during August’s strike

The industrial relations heat is rising as high as the temperature, as a summer of strikes disrupts everyday life and business.

Labour disputes are erupting across various sectors as unions and management clash. Another rail strike begins this weekend and more are scheduled for next week. That is likely to hit footfall in cities as commuters and day-trippers stay at home. 

Places such as central London, still not back to normal since the pandemic, face another unwelcome trading hit.

On the day of the first national rail strike, in June, Springboard data showed central London shopper traffic down 27% week on week, and down 11% in other city centres. 

As well as inconveniencing consumers, the planned Royal Mail strike action will throw a spanner in the works of core retail operations. The Royal Mail is a key fulfilment partner of many retailers, which generally hold its reliability and service standards in high regard.

Four days of strikes are on the cards at the end of August and in early September. Inability to fulfil orders and a potential backlog could depress ecommerce demand over this period. Industrial action would also add to the Royal Mail’s losses, potentially eroding – at least temporarily – its capabilities.

Putting people first

But the strike that is probably worrying retailers most is an eight-day stoppage later this month at Felixstowe, the UK’s busiest container port where pandemic-related supply chain problems caused retailers difficulties last year.

Felixstowe handles around half of all containers to the UK and retailers are working out how big a problem they face. While some expect an impact on the availability of certain lines, the effect is likely to be limited. That could change if the dispute drags on, creating a supply backlog.

What is happening about the confrontations and the high inflation that has created a groundswell of discontent? Precious little. The Conservative leadership contenders Rishi Sunak and Liz Truss have delivered nothing but platitudes and seem more concerned with mud-slinging than working together to provide solutions that could offer some comfort to anxious consumers. Chancellor Nadhim Zahawi is the invisible man, Boris Johnson is prime minister in name only –  the fact he even attended a meeting with energy chiefs was deemed so unusual as to be headline-worthy – and the Labour opposition is AWOL.

Amazon has faced sit-ins and walk-outs at some of its depots. Warehouses, typically unionised, have traditionally been centres of militancy – the threat of action has led to some hefty pay rises at retail distribution centres and there must be the possibility of more to come.

“Everybody has probably had enough agility for a lifetime, but more will be called for as the cost-of-living crisis and its effects convulse the country”

However, retail can take comfort, amid the conflict, that it is showing the way on many fronts.

Retail leaders have put fairness at the top of their agendas and put their money where their mouth is. 

They have come to the assistance of hard-pressed consumers by freezing and cutting prices wherever possible: Halfords recently unveiled a raft of initiatives to support customers facing an income squeeze, while Iceland has been dispensing £30 food vouchers to vulnerable pensioners.

Staff have taken a more important place than ever in retail priorities. The efforts made by frontline employees in distribution centres and stores during a difficult few years have reminded everyone of how important they are to business success. From welfare and mental health programmes to higher pay at retailers ranging from Currys to Sainsbury’s, employee interests are rightly being represented.

Unlike some other industries, such as air travel, retail has also demonstrated its agility when faced with one challenge after another, from labour shortages to supply chain volatility.  That puts retail in as good a position as it could be to adapt to the present circumstances. Everybody has probably had enough agility for a lifetime, but more will be called for as the cost-of-living crisis and its effects convulse the country.