Covid recession could see 2,500 branches disappear from the high street, it is claimed

first_imgHome » News » Agencies & People » Covid recession could see 2,500 branches disappear from the high street, it is claimed previous nextAgencies & PeopleCovid recession could see 2,500 branches disappear from the high street, it is claimedPrediction is made by TPFG Gareth Samples based on his experience of previous recessions, although this time they could simply go hybrid.Nigel Lewis27th August 202001,434 Views The CEO of Martin & Co parent company TPFG has predicted that 10% of estate agency branches will disappear over the next 12 to 18 months as Covid bites, despite the mini boom under way within the sales market.During an economic recession, which is expected once the furlough scheme ends in October, the industry could drop from its peak of 22,500 branches to 20,000, predicts Gareth Samples based on previous recession data.But he says that unlike other recessions these lost branches are likely to be soaked up by new hybrid and ‘spoke and hub’ operations. He also says it’s hard to predict what will happen because it’s down to each estate agency’s preparedness and business health.For example, Connells has carried on pretty much as normal during Covid with its traditional high street model while others have been forced to look at doing things differently including cutting the number of branches.Hybrid modelSamples points to Haart, which has belatedly begun embracing the hybrid model in earnest recently and Countrywide, which is facing branch cuts if Robin Paterson’s letter to its chairman Peter Long is anything to go by.“I thought that letter was really interesting – because it gave some clarity as to what that Paterson thought the company should be doing, [including possible branch reductions and brand consolidation].“The lack of response is the most worrying part of that – because it begs the questions whether there is a strategy in place at Countrywide.He also points out that LSL has already completed its pruning exercise before Covid arrived including fewer but bigger branches.“We’re lucky because we’ve got Ewemove and it already has 250 people on the ground now, which is a major accomplishment by itself.”Read our full interview with Samples in the September issue of The Negotiator magazine – out next week.Gavin Samples LSL connells Countrywide August 27, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more