The US Supreme Court, an American institution, was front and centre of the global news agenda yesterday but a British institution was, simultaneously, making headlines here in the UK, also in less than ideal circumstances. 

In 1884, Marks & Spencer was first established when Michael Marks, a Polish refugee opened a market stall in Leeds. On Wednesday, the group posted its first ever loss in its 94-year history as a public company, citing store closures and a slump in clothing sales as the reason for its less-than-stellar performance. In the six months to 26 September, the company made a loss of £87.6 million compared with profits of £158.8 million in the same period last year. 

Meanwhile, John Lewis announced that it will be cutting an additional 1,500 jobs in its efforts to make £300 million in annual cost savings and return to profitability. The latest job cuts come on top of the 1,300 shop roles previously scrapped in the closure of eight department stores earlier this year. A mere three days ago, Primark reportedly saw its full year adjusted operating profit plunge by 60 percent to £362 million, while full year revenues fell by 24 per cent, as a result of coronavirus restrictions and the retailer’s lack of an online presence.

Interestingly, however, a new study by the Local Data Company indicates that small stores have fared better than retail chains throughout the pandemic. According to the research, the rate of shop and restaurant closures increased by more than double during the first half of the year, rising to a net decline of 7,834 units from 3,647 in 2019. And yet, independent businesses – which represent a hefty 64 percent of the retail and leisure market – accounted for less than a third of the net loss of occupied units. 

Having capitalised on their agile, innovative nature and in-depth understanding of the local area, small businesses sought to introduce new product lines, offer food deliveries and pivot online during the first lockdown to fulfil the rapid shift in consumer habits. Their big-name counterparts, in contrast, have seemingly struggled to adapt. 

Asserting that the firm’s performance has been ‘much more robust than at first seemed possible’, chief executive of M&S, Steve Rowe spoke optimistically about how Covid-19 has driven the company to bring forward ‘three years’ of change in one, in becoming a leaner, faster and more digital business. 

It would appear that independent retailers have, in fact, beaten him to the punch.