A series of storms and the media’s wall-to-wall coverage of the coronavirus outlook has added to the woes of Britain’s high street retailers.
According to BDO’s High Street Sales Tracker (HSST), in-store like-for-like sales fell 0.9% in February from a dire base of -3.7% the same month last year.
Year-on-year lifestyle sales were down 2.9% in February – the third straight February of negative in-store sales for the category – with the usually buoyant Valentine’s Day shopping spike failing to lift the performance.
Sales of homewares also fell by 3.6%, making the first negative result for the category since August 2019.
Fashion sales saw a marginal improvement of 0.3% in February but weren’t even close to offsetting a negative base of -3.5% for last year.
Moving away from the high street, non-store sales were also weak throughout the month with an increase of only 6%. The result was the second-worst monthly non-store like-for-like performance since 2010.
Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “Bad weather and concerning headlines contributed to an already difficult trading environment in February. The poor performance in non-store sales contributed further to a disastrous month for retail across the board.
“It’s clear that shoppers are still exercising extreme caution. While some of last year’s uncertainty dissipates, it seems it’s being replaced with increased volatility. As the news of the impact of coronavirus continues to spread, and Britain’s high streets take a hit from February’s extreme weather, many retailers will feel the impact of the higher costs needed to absorb the disruption within their supply chains.”
She added: “With the Budget next week, businesses and shoppers will look to the government to see what measures are being taken to mitigate these risks. They also want the government to follow through on its promise of a ‘fundamental review’ of the business rates regime, which is suffocating bricks and mortar retail. For retailers feeling the pressure, the Budget couldn’t come at a more crucial time.”
NAM Implications:
- Consumers are confused and frightened by the uncertainty that prevails…
- They have lost faith in politicians, bankers and mainstream media…
- Storms and Coronavirus are but triggers that have replaced Brexit.
- In other words, the issues are more fundamental, with trust a core and volatile element…
