Official data shows retail sales in March saw their sharpest fall since records began over 30 years ago after surging demand for groceries was not enough to outweigh the closure of most non-food stores during the coronavirus lockdown.
The Office for National Statistics (ONS) figures show total sales volumes plummeted 5.1% on the previous month and by 5.8% year-on-year. Clothing store sales saw a particularly sharp fall when compared with February, sliding 34.8%. Household goods were down 8% and other non-food volumes fell 26%.
Meanwhile, food stores reported their strongest growth on record in March. Sales volumes jumped 10.4% month-on-month as shoppers stockpiled essential groceries at the start of the lockdown. Supermarkets saw volumes increase by 10.3%, while specialist food and alcohol-focused stores grew 4.5% and 31.4% respectively.
With many e-commerce retailers continuing to trade during the outbreak, online sales volumes rose by 8.3% with the sector accounting for a record 22.3% of all retailing as consumers switched to online purchasing during the pandemic.
Commenting on the figures, Richard Lim, CEO of Retail Economics said: “Retailers are in crisis mode as the impact of Covid-19 has obliterated sales to new record-lows.
“The immediate shock to our lives has forced new shopping behaviours and a focus on essentials. But worries about health, job security and prospects for the economy are causing some consumers to cut all non-essential spending and hibernate.
“The trauma will be most acute for apparel retailers, who are desperately managing cash flow to try and keep working capital above the water. Despite an unprecedented government support package, we have already seen some retailers fall into administration and it is inevitable that more will follow.
“But the effect will be felt unevenly across retail sub-sectors. The closure of non-essential retail stores has necessitated a shift towards online, providing an opportunity for retailers who over the years have invested heavily in their online operations. That said, at an industry level this will fail to offset the overall decline in demand as most retailers struggle to cope with a step-change in the volume of orders.”
