pic: Adam El-kolli
Many of Peckham’s local businesses have been forced to close either permanently or temporarily while others have been forced to cut back on unnecessary expenses.
The cost of living crisis has been a pioneering factor in the closure of many local, retail businesses in Peckham following the Covid-19 pandemic. Inflation continued to rise in 2022 with the annual rate of inflation reaching 11.1% in October 2022, the highest it has reached in 41 years.
pic: Adam El-kolli
Business owners across Peckham have been directly affected by the cost of living crisis as well as the Covid-19 pandemic, as a result of there being no demand for products that aren’t considered necessities like; cosmetics and Fashion. Mr Mansu, who currently owns a fashion store on Peckham high street, previously owned a different store in the same area pre-Covid, however he was forced to close as he could no longer afford to pay the rent.
As a result of the national lockdown in 2020 many large companies managed to stay afloat because of online shopping, however local businesses like Mr Mansu’s were unable to open an online store due to a lack of resources like money and staff. Mr Mansu said: “During the pandemic stores that were selling medical supplies and groceries were thriving, however there was no demand for fashion as people weren’t leaving their homes.”
Following the Covid pandemic, inflation is still rampant across the UK, particularly in London where the cost of ling is 27% more expensive than the rest of the UK. In Peckham where poverty is at an all time high with an income deprivation score of 1.5, which is worse than all other London boroughs even food becomes a struggle for residents. Mr Mansu was asked if he is currently struggling to keep his business open, he said: “my business is suffering, people can’t afford things, there are many shops like mine in the area, so it is very competitive so prices are important”.
While the cost of living crisis is a salient cause for local businesses struggling financially, another local store manager, who wishes to remain anonymous, said: that the current conflict in the Middle East in Gaza is making customers hyper aware. They do not want to support Israel so avoid shopping at unknown retailers as a whole, adding additional financial strain on business owners.
Although the rate of inflation has improved since the pandemic in 2020, it’s clear that felt and the cost of living crisis it may be a while until life is back to normal to resolve.
