Retailers and businesses across the UK are bracing themselves for a period of uncertainty following the death of Queen Elizabeth II, according to David Jinks of delivery company Parcel Hero.
Jinks expects that the long-term impact could be the demise of low-value coins, changes to the postal service and a shake-up of Royal Warrants. The financial impact of an unscheduled Bank Holiday for Queen Elizabeth’s state funeral on Monday could also be significant.
“Although in many ways long expected, the death of Queen Elizabeth has still come as a shock to many,” said Jinks. “It remains to be seen how it may impact on consumer confidence during a period of uncertainty and financial turmoil.
Jinks has also warned companies of the importance of correctly gauging public sentiment to strike the right tone in respect of marketing their products, in order to avoid being labelled ‘disrespectful’.
“It’s already clear that retailers are having to tread carefully during this sensitive period to avoid any missteps”, he said.
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He points to an online fashion brand’s promotion of an unrelated clothing line in a post commemorating the Queen, a move that was branded disrespectful. Similarly, the holiday resort Centre Parcs was the recipient of online backlash when it announced it would be closing on the Monday Bank Holiday, much to the annoyance of those booked in for the date - a decision they later reverted from.
The unplanned for Bank Holiday is also proving to be a nuisance for business owners and retailers, as “unlike other Bank Holidays, this is an event that employers will not have planned for”, said Jinks. Without a subsequent increase in sales of commemorative merchandise, it could result in a “significant loss of income for some retailers”.
The UK economy is already showing signs of strain, with the retail sales figures dropping by 1.6% in August month-by-month and 5.4% year-on-year. Ecommerce has taken an even bigger hit, with -3.6% compared to July and -9.5% compared to August of 2021.
Jinks said that government action is imminent. "The new Chancellor, Kwasi Kwarteng, is due to reveal a mini budget next Friday (23 September) that is expected to include new tax cuts and more details on energy caps. Retailers will be hoping this will restore confidence but the jury is out on whether consumers will think tax cuts are the answer to our problems."
As well as post-offices, large supermarket chains and public buildings closing, the Queen’s death is also predicted to bring about long term changes in other areas. All currency currently embossed with the Queen’s image will remain in circulation, however as new notes and coins are brought into circulation, they will instead feature King Charles III’s image.
Jinks predicts that this will herald the “demise of lower value coins”. One and two pence coins are considerably more expensive to produce than they are worth, so long mooted plans to ease their circulation may come about with the UK Royal Mint foregoing to mint new lower denomination coins in the new King’s image.
Also at risk is the Royal Warrant of Appointment, a warrant given to companies supplying the Royal Family that was first established in the 15th century. As each of the over 800 companies will have to re-apply to the new monarch for the warrant, Jinks believes that many will be questioning their usefulness in a modern age.
“Will all companies decide it is worth their while to renew their warrant? There are some who argue that warrants may have had their day. They are only granted to companies that provide goods to the Royal Household”, says Jinks.
“Today, the UK economy is based more around services than manufacturing. Professional service providers to the Royal Household, such as bankers, brokers, agents, solicitors, employment agencies, training providers and veterinary services are not eligible for warrants, which makes the system less relevant.”
