Somewhat unsurprisingly, retail sales experienced a record fall last month as the government’s coronavirus lockdown measures took hold.
Figures from the British Retail Consortium and KPMG show total sales in the five weeks to 4 April fell by 4.3% year-on-year. This was the sharpest decline since 1995 when the BRC began its retail survey.
While stockpiling of food and essentials boosted trade earlier in the month (+12%), sales in the final two weeks of the period plummeted 27% after the government barred the public from most stores other than supermarkets. However, e-commerce fared better during the month with online non-food sales increasing by 18.8%.
“The closure of non-essential shops led to deserted high streets and high double-digit declines in sales which even a rise in online shopping could not compensate for,” said BRC Chief Executive Helen Dickinson.
The trade body highlighted that sales of computers and accessories, board games and fitness equipment all rose sharply as a result of the move to home-schooling and working from home. In contrast, demand for clothing “significantly” declined.
Debenhams and fashion brands Oasis and Warehouse have recently fallen into administration due to the lockdown. “The crisis continues; the retail industry is at the epicentre and the tremors will be felt for a long while yet,” said Dickinson.
“Many physical non-food retailers have been forced to shut down entirely or to limit themselves to online only to protect customers and staff. Consequently, hundreds of thousands of jobs at are risk within these companies and their supply chains.”
Paul Martin, UK Head of Retail at KPMG, added: “Lockdown has prompted a fundamental rethink of what is deemed essential. Total sales may only be down 4.3%, but the sharp divide between food and non-food, and between physical and online, is far more drastic.
“An uncertain future lies ahead and the industry’s reset button has clearly been pressed. Smart retailers will already be thinking about what this means for the future, but the resilience of the sector cannot be underestimated.”
Meanwhile, Barclaycard today reported a similar picture in its March spending data. This showed a 6% decline, the biggest since its survey began in 2015.
While supermarket spending surged up 21% on the month, travel spending sank by 40% and consumer confidence fell to a survey low. Just 25% of people surveyed felt confident about the economy, down from 42% in February.
