- Don-Alvin Adegeest
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Plummeting retail sales saw the sharpest decline on record since the British Retail Consortium (BRC) began tracking sales data in 1995.
Total UK sales fell by 4.3 percent compared with the previous year, as the lockdown saw nation-wide store closures and shoppers venture out only for essentials.
The figures were echoed by Barclaycard, which saw a huge boost in supermarket sales as people stockpiled food, but avoided non-essential retailers. In the past week we have seen Debenhams, Oasis, Warehouse and Cath Kidston call in administrators and New Look delaying supplier payments ‘indefinitely’.
Fashion went into hibernation
Fashion sales then went into hibernation, reports the BBC, while home fitness equipment saw a spike as families adapted to life under lockdown at home.
The head of the BRC, Helen Dickinson, warned that given the pressures retailers are now under, hundreds of thousands of jobs are at risk across companies and their supply chains.
“In March, the necessary measures to fight the spread of coronavirus led to the worst decline in retail sales on record. Furthermore, the headline figure masked even more dramatic swings: food and essentials faced an unprecedented surge in demand in the early part of March, only to drop significantly into negative growth after the lockdown and introduction of social distancing in stores,” Dickenson said.
“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. Sales of computers and accessories, board games and fitness equipment all rose sharply as a result of the move to home-schooling and work-from-home. In contrast, demand for the latest fashion ranges significantly declined.”
“The crisis continues; the retail industry is at the epicentre and the tremors will be felt for a long while yet. 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. At the same time, supermarkets brace themselves for lower sales, while still spending huge sums on protective measures, donating to food banks and hiring tens of thousands of temporary staff. We welcome the Government’s actions to date, yet millions of livelihoods rely on their continued support.”
Photo credit: FashionUnited
