Latest industry figures confirm retail sales experienced a major boost last month after non-essential stores were allowed to reopen.
To provide meaningful comparisons, the data from the British Retail Consortium (BRC) and KPMG is compared with the same period in 2019, rather than in 2020 when most stores were closed at the start of the pandemic
Total sales increased by 7.3% across the month of April compared with two years ago. This is above the 3-month average growth of 6.0% as pent-up demand and increased confidence enticed shoppers back to stores after more than 12 weeks lockdown.
Non-food sales rose by a quarter on a like-for-like basis in the three months to April and by 46% in the month of April from two years earlier. In the three weeks after stores reopened on 12 April, non-food sales rose 25% from March, when most shops were closed.
Online non-food sales rose 57% in April compared with a 4.3% gain in April 2019 but the rate of growth was less than the three month average of 83% that resulted from lockdown.
Meanwhile, food sales increased 9.9% on a like-for-like basis and 10.3% on a total basis in the three months to April compared with two years ago.
The BRC stated that the figures were good news but warned the industry was still in a difficult position with economic uncertainty and high costs meaning the future of many retailers remains under threat.
Helen Dickinson, the BRC’s Chief Executive, said: “While the boost in sales is positive as the industry continues to invest in safety and the online offer, high streets still have a long way to go on the path to recovery. There are 530,000 people who work in retail still on furlough. This and the end of the full business rates relief in England in June jeopardises the future of many stores and the livelihoods of those who depend on them.
“The Government must deliver on its promise to reform the broken rates system in their ongoing review and reduce the financial burden on retailers, or risk more unnecessary store closures and job losses.”
NAM Implications:
- Given that the end of the full business rates relief in England in June…
- …maybe a final straw for some retailers…
- …it is key that NAMs explore the ‘retailer going bust’ option.
- And calculate the incremental sales required by their business…
- …to recoup the loss.
- In order to concentrate the minds of those that may need convincing.
