Recently, riots have become an increasingly frequent occurrence across Europe and the UK, leaving a trail of disruption in their wake. For retailers, the impact of these chaotic events can be devastating, from property damage to significant financial losses. As the threat of unrest grows, it's more important than ever for businesses to understand the risks and take proactive measures to remain resilient. This blog explores the impact of riots on retailers and how retailers can remain resilient.

The Impact of Riots on Retail

Unfortunately, the retail sector is highly exposed to unstable events like pandemics, natural disasters, and riots. We saw this vulnerability firsthand during the COVID-19 pandemic, and it is once again evident with the recent riots spreading across the UK.

Here is how Riots impact retailers:

Store Closures and Damage

During massive riots and protests that threaten the safety of the store and its staff, stores are often forced to close their doors. This situation is unfortunate not only for customers who are unable to make purchases but also for employees who must endure the loss of working hours. Moreover, the business not only faces financial losses from being closed but also from the damage often inflicted on stores in riot-affected areas, such as broken windows, vandalism, and more.

Loss of Stock and Inventory

Unfortunately, when riots turn violent and chaotic, many offenders take the opportunity to loot, leading to significant losses in stock and inventory for retailers. This is especially frustrating for businesses in riot-affected areas, as they suffer the consequences without being involved in the underlying issues, simply because they are located there and people have decided to exploit the situation.

Consumer Confidence

When riots occur, many people who are not involved in the protests feel unsafe traveling to or even passing through riot-affected areas. They fear heavy traffic, potential damage to their property, and even for their personal safety. As a result, riots significantly reduce footfall in these areas, which often include main streets. Additionally, many consumers avoid these areas not only due to safety concerns but also because of the tension in the atmosphere, which dampens their mood for shopping or going out.

Long-term Impact on Local Economy

The effects of riots extend beyond immediate damage and lost revenue; they can have lasting consequences on the local economy. Businesses that repeatedly face disruptions may struggle to recover, leading to closures and job losses. This, in turn, reduces the economic vitality of the area, as fewer stores remain open to attract customers and generate income. Over time, the decline in footfall and the perceived instability can deter new businesses from setting up shop in the affected areas, further exacerbating the economic downturn.

How Retailers Can Remain Resilient

While occurrences such as riots are unpredictable and hard to prepare for, there are few steps retailers can take in order to remain resilient in unstable times.

Enhance Security Measures

If you haven’t already, consider investing in security systems such as alarms, surveillance cameras, reinforced entry points, and RFID security gates to protect your store from potential damage and looting. While these measures may not guarantee complete protection, they can significantly reduce the likelihood of your store being targeted. Additionally, if looting does occur, these systems can aid in the investigation and help you recover from the losses more effectively.

Develop an Emergency Response Plan

Create a detailed crisis management plan that includes clear protocols for store closures, employee safety, and securing inventory. This plan will enhance your preparedness for such events and provide guidance to your staff on how to respond effectively during emergencies.

Communicate with Employees and Customers

In times of uncertainty, when not all questions have clear answers, one of the most important things is to maintain open communication and respond quickly. This means keeping employees informed and providing guidance as needed, while also updating customers about store operations and the status of their orders, etc.

Diversify Sales Channels

Another crucial measure for enhancing resilience is expanding sales channels. Implementing an eCommerce store, leveraging social commerce, and maintaining an efficient omnichannel strategy can ensure smooth sales operations even when physical stores are forced to close. Even if most of your sales come from brick-and-mortar locations, eCommerce has proven its value when physical stores are unable to operate, as demonstrated during the pandemic.

Adapt and Learn from Each Incident

Each incident of unrest provides valuable lessons for improving your business’s resilience. After every event, take the time to review your response, identify what worked well, and pinpoint areas for improvement. By continuously adapting and refining your strategies based on past experiences, you can better prepare for future challenges and strengthen your store’s ability to handle crises effectively.

Riots and unrest are increasingly affecting retailers across Europe and the UK, causing damage, financial losses, and reduced consumer confidence. To remain resilient, retailers should invest in security, create a solid emergency plan, communicate clearly, expand sales channels, and learn from each incident. These steps can help businesses withstand disruptions and recover more effectively, ensuring they are better prepared for future challenges.