Britain’s retailers have seen record falls in trade as a result of the Coronavirus lockdown
Sales decreased by 19.1% in April, against an increase of 2.4% in April 2019
says the British Retail Consortium.
This is the worst decline recorded since the monitor began in January 1995, reflecting the effect of lockdown measures.
Over the three months to April, in-store UK retail sales of non-food items plunged 36 per cent on a total basis.
Helen Dickinson OBE, Chief Executive | British Retail Consortium said
“With lockdown measures in full swing, April saw a record fall in retail sales. Food sales were disappointing, with the virus preventing large family gatherings and turning Easter into a more modest affair. For many non-food goods, such as clothing, footwear and large household items, the decline was particularly steep as consumers responded to lockdown conditions. The proportion of goods purchased online rose sharply, with products such as games consoles, bicycles, office equipment, and haberdashery, all high on the list. However, even the dramatic rise in online sales could not make up for the loss of instore purchases. Coronavirus has accelerated many of the trends seen prior to the outbreak and it is likely that as the lockdown wears on, these new shopping habits – such as the trend towards online purchases – will become more entrenched for many consumers.
“While retailers have a lifeline through various Government loans and support, they need to know this will continue beyond the current deadlines. Government should also step in to support on rents for those retailers still facing rent costs, despite little or no sales. Without this, businesses may be forced to close – threatening jobs and further harming local communities. Monday’s Recovery Strategy was an opportunity missed to provide a clear and detailed roadmap, outlining when and how shops will reopen after the 1st June, so that retail can help get the economy moving and the public can get all the goods they need.”
Paul Martin, UK Head of Retail | KPMG
“With the nation firmly under lockdown throughout April, drastic retail sales declines were to be expected. Total sales fell a staggering 19.1% compared to last year – eclipsing any previous fall since records began – but that pain hasn’t been felt equally. So few physical stores, or indeed retailers, were open for business in the month, making like-for-like comparisons hard to establish, but the ability to continue trading or leverage online channels was beneficial for the fortunate few though.
“Aside from ‘essential’ retailers still operating physically, consumers have had little alternative but to log-on, and online sales were up nearly 60%. As you’d expect with consumers staying at home, the focus has been on home-related goods, as well as trying to keep entertained. Computing equipment, household gadgets, as well as toys and baby equipment were among the categories that performed strongly. Meanwhile other non-food categories, especially fashion, experienced a significant decline.
“The disparities in retail continue, not only between ‘essential’ and ‘non-essential’, but also between those with an online channel and those without. Eyes are firmly fixed on how the easing of restrictions will impact consumer spending going forwards, with the acceleration of online sales likely here to stay and overall demand in certain categories, like fashion, remaining subdued for some time.”
