💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UK retail sales growth slows as November lockdown hits non-food sales - BRC

Published 12/07/2020, 07:04 PM
Updated 12/07/2020, 07:46 PM
© Reuters. FILE PHOTO: Outbreak the coronavirus disease (COVID-19), in Watford

By David Milliken

LONDON (Reuters) - British retail sales growth slowed in November when non-essential stores shut as part of a four-week lockdown in England, but online sales were able to fill more of the gap than in the first lockdown in March, industry data showed on Tuesday.

The British Retail Consortium said year-on-year total retail sales growth slowed to 0.9% in November from 4.9% in October, the weakest spending growth since a 5.9% fall in May.

A measure of like-for-like sales - which includes online retail and stores that were able to remain open - rose by 7.7% compared with a year earlier, the biggest gain since June.

"Some retailers were able offset a proportion of lost sales through greater online and click-and-collect sales, ensuring they could still serve their customers," Helen Dickinson, chief executive of the British Retail Consortium, said.

For others, the coronavirus has proved the final straw. Last week 242-year-old department store chain Debenhams said it would close if it could not find a new owner and Arcadia, which operates many of Britain's best-known high street clothing chains, entered administration.

Britain's economy shrank by a record 20% during the three months to June, which covered most of the first lockdown, but the Bank of England expects a much smaller 2% decline during the final three months of 2020 in response to more recent closures.

Non-essential shops and most hospitality and entertainment venues had to close to the public in England between Nov. 5 and Dec. 2, and there were similar restrictions elsewhere in the United Kingdom. The BRC data covered Nov. 1 to Nov. 28.

Barclaycard, which processes around half of British credit and debit card payments, said consumer spending between Oct. 24 and Nov. 20 was 1.9% lower than a year earlier.

The fall in spending masks big differences between sectors.

Spending at supermarkets was up 24%, and online food shopping was 98% higher than a year earlier, while spending in restaurants and pubs was less than half year-ago levels.

Department stores and clothing retailers, many of whom have struggled to sell online, saw drops in spending of 18% and 13% respectively, Barclaycard said.

© Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Newcastle upon Tyne

"The big question now is whether Brits will flock to the high street for Christmas shopping after the November lockdown, providing a much-needed boost in December," Barclaycard executive Raheel Ahmed said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.