Britons flocked to the high street to take advantage of shops and restaurants reopening on Monday as surveys reported consumer confidence at its highest level in nearly three years.
Customers braved chilly temperatures to queue outside their favourite shops as they waited for department stores and boutiques in England and Wales to open for the first time in more than three months.
Consumer sentiment in the UK rose to 108.5, the highest level since August 2018, according to data from YouGov and the Centre for Economics and Business Research (CEBR).
Paul Marchant, chief executive of budget retailer Primark, which has 161 shops across the UK, told The National that the retailer had enjoyed "a wonderful morning … welcoming our customers back".
Shoppers lined up outside Primark as well as luxury department store Selfridge’s on London’s Oxford Street from about 6am, while about 1,000 customers lined up at Ikea in Bristol before its reopening.
“As expected, stores have been very busy but we're more than ready and very confident in the safety measures we have in place, " Mr Marchant said. "The mood has been incredibly upbeat and positive.”
Mr Marchant said the company’s spring/summer ranges “are proving popular as customers finally get to shop for the latest trends”.
Alison Grainger, Marks & Spencer’s head of clothing and home, said the retail chain has also stocked its stores with “tiered dresses, pretty tops and new seasonal denim” to meet demand.
“We know lots of customers are excited about dressing up for picnics and alfresco dining with friends & family,” she said.
"While it’s no longer all just about loungewear, as you would expect we’re going to be dedicating more space to casualwear in our shops than pre-pandemic."
By midday on Monday, footfall across all UK shopping destinations was up 100 per cent compared with a week ago and 350 per cent higher than 2020, according to data from Springboard.
Retail parks, such as Bicester Village, a popular outlet shopping destination, were the preferred choice for shoppers, with footfall up 12.6 per cent at 10am compared with 2019 levels.
Meanwhile, the YouGov/CEBR analysis showed that consumer confidence has risen steadily since Prime Minister Boris Johnson first unveiled his roadmap out of lockdown in February.
In March, Britain’s consumer confidence score increased by 2.1 points to 108.5, with any score above 100 indicating that more consumers are confident than not.
Rising business activity and optimism about household finances and provided the biggest boosts to the score.
The British Retail Consortium said businesses have spent millions of pounds to make shops Covid-secure, with Marks & Spencer, for example, installing a greeter at the door, John Lewis offering customer services hosts and Ikea putting in place staggered entry.
Marks & Spencer said changes in its stores from Monday help customers shop faster and in as socially distanced a manner as possible.
The retailer said it has seen a 200 per cent increase in downloads of its app and over one million transactions via its Mobile Pay Go digital shopping option, something it expects to continue.
Sacha Berendji, operations and property director at M&S, said the pandemic has “accelerated” trends and patterns it was seeing pre-crisis, causing it to transform its shopping experience for customers.
Shoppers can use the store app to scan their purchases and pay through their phone, while nearly 100 M&S cafes will be available for takeaway with 14 also available for dine-out eating outside.
Hospitality venues, including restaurants, cafes, museums, zoos and theme parks also welcomed customers back on Monday, as well as gyms, beauty salons, spas and swimming pools.
Julian Metcalf, chief executive of the sushi chain Itsu, told the BBC he was hopeful demand would pick up as people returned to the high street, but admitted he felt “a bit nervous”.
England's hospitality sector will receive a £314 million ($430.5m) boost in the first week after the reopening of the country's restaurants, cafes and pubs, according to the Cebr.
Before the pandemic, hospitality was the third largest employer in the country, providing jobs for 3.2 million people and creating £130bn in economic activity, UK Hospitality said.
“Reopening of pubs and other hospitality businesses outdoors is a step forward for the full reopening of our sector. Safety of our staff and customers remains our top priority,” the trade body said.
Britain's economy is set to bounce back sharply from the surge in business activity, with a study from Deloitte finding that chief financial officers are more optimistic now than at any point in the past 13 years.
The Federation of Small Businesses found that more than half of firms expect revenue to rise over the next three months.
However, 40 per cent of Britons expect life to return to normal in the next year, according to a new study from the World Economic Forum and IPSOS, compared with 60 per cent globally.
While shops are planning to stay open for longer, it is unclear if the surge in demand on Monday morning will last long enough to help retailers recoup their lost earnings.
To ensure the recovery stays on track, Britons will need to spend the huge pile of savings they have built up in their bank accounts during the three lockdowns, with major banks calculating the figure to be as high as £170bn – a stimulus package worth almost 8 per cent of pre-pandemic gross domestic product.
Meanwhile, buyers heading to car showrooms for the first time since January 5, will be welcomed with a wider range of clean vehicles than ever before, according to the Society of Motor Manufacturers and Traders (SMMT).
There are now 152 "clean" car models available out of a total of 462, said the SMMT, a choice that could help the sector recover the £22.2bn in lost turnover during the pandemic.
However, a full recovery by the end of the year remains highly challenging for the sector, with new car registrations during the first quarter of this year down 37 per cent on the average for 2010-2019.
For levels to return to normal by the end of the year, keys to a new car would need to be handed over every 12 seconds.
“With the widest and greenest choice of cars ever seen, unleashing pent up consumer demand can accelerate the industry’s recovery and that of the economy,” said Mike Hawes of SMMT.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
More on Quran memorisation:
More from Neighbourhood Watch:
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
The%20specs
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THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
THURSDAY'S FIXTURES
4pm Maratha Arabians v Northern Warriors
6.15pm Deccan Gladiators v Pune Devils
8.30pm Delhi Bulls v Bangla Tigers
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5