Retail sales decline at ‘worst rate on record’

Retail sales suffered the “worst decline recorded” in March, with a year-on-year total sales decline of 4.3%. The findings come from the latest BRC-KPMG Retail Sales Monitor, which said this is the lowest recorded rate since the monitor first began in January 1995. Its data showed that sales “contrasted sharply” before and after the nationwide lockdown on 23 March. In the first three weeks of the month, sales rose by 12%. They fell by 27% in the last two weeks of the period, however. Over the three month period ended March 2020, in-store sales of non-food items declined 13% on both a total and like-for-like basis. This is in steep contrast to the 12-month total average decline of 6.1% and is attributed to the closure of “non-essential” stores. In the same period, food sales increased 4.9% on a like-for-like basis, and 5.1% on a total basis, a rise from the 12-month average growth of 2.4%. Meanwhile, non-food retail sales decreased by 6.7% on a like-for-like basis and 6.6% on a total basis, far below the 12 month average decline of 3%. Nonetheless, as the crisis unfolded, online non-food sales increased by 18.8% in March against a 2.5% growth the year prior. Paul Martin, UK head of retail at KPMG said: “Retail sales experienced an historic drop in March, with Covid-19 changing the consumer landscape significantly. Lockdown has prompted a fundamental rethink of what is deemed essential. “Also, the UK’s closure of non-essential stores only started at the backend of the month, so it’s likely worse data is yet to emerge.” He added: “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. “Likewise, we cannot overlook the huge contribution many retail workers have made to help the nation during the crisis.” Helen Dickinson OBE, CEO of the British Retail Consortium, said: “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 are at risk within these companies and their supply chains.” She added: “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.”

Retail sales decline at ‘worst rate on record’

Check out our free weekly podcast

Read Next

Today’s news in brief-3/5/24

Go Outdoors opens new store at Metrocentre

The Works completes admission to AIM

Today’s news in brief-2/5/24

Oliver Bonas to open new shop in Angel Central

Today’s news in brief-3/5/24

Go Outdoors opens new store at Metrocentre

The Works completes admission to AIM

Today’s news in brief-2/5/24

Oliver Bonas to open new shop in Angel Central

Today’s news in brief-3/5/24

Go Outdoors opens new store at Metrocentre

How to drive retail growth with first-party data

Retailers face slow start to Spring as footfall declines 7.2% in April

Apple profits fall as iPhone demand slows

Asda successfully refinances £3.2bn of debt

Check out our free weekly podcast

Read Next

Today’s news in brief-3/5/24

Go Outdoors opens new store at Metrocentre

The Works completes admission to AIM

Today’s news in brief-2/5/24

Oliver Bonas to open new shop in Angel Central

Related Articles

Today’s news in brief-3/5/24

Go Outdoors opens new store at Metrocentre

How to drive retail growth with first-party data

Retailers face slow start to Spring as footfall declines 7.2% in April

Apple profits fall as iPhone demand slows

Asda successfully refinances £3.2bn of debt