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UK lockdown sends retail sales to record low, but alcohol sales rise | UK lockdown sends retail sales to record low, but alcohol sales rise |
(30 minutes later) | |
Economists predict bigger fall in April after coronavirus panic-buying boosts March figures | |
Retail sales recorded their largest fall on record in March as consumers restricted their trips to high street stores and local shops under the government lockdown. | Retail sales recorded their largest fall on record in March as consumers restricted their trips to high street stores and local shops under the government lockdown. |
Amid concerns the economy could suffer its biggest contraction in several centuries, the fall in retail sales of 5.1% compared with the previous month exceeded the already downbeat expectations of City analysts, who forecast a 4% slide for March. | |
Panic-buying of fridge freezers and food ahead of the lockdown and household goods bought online prevented a bigger slump, leading to predictions of an even bigger fall in April when the full impact of the government’s measures to combat Covid-19 will be felt. | Panic-buying of fridge freezers and food ahead of the lockdown and household goods bought online prevented a bigger slump, leading to predictions of an even bigger fall in April when the full impact of the government’s measures to combat Covid-19 will be felt. |
The Office for National Statistics said store closures had also restricted sales, especially of clothing, which dived by 35% month on month, adding to the gloom that has descended on the retail industry. | The Office for National Statistics said store closures had also restricted sales, especially of clothing, which dived by 35% month on month, adding to the gloom that has descended on the retail industry. |
Furniture sales dropped, along with home furnishings, accelerating a trend that was already hurting retail sales over the previous year as Brexit uncertainty deterred shoppers from buying big-ticket items. Petrol sales declined by 18.9% month on month. | Furniture sales dropped, along with home furnishings, accelerating a trend that was already hurting retail sales over the previous year as Brexit uncertainty deterred shoppers from buying big-ticket items. Petrol sales declined by 18.9% month on month. |
Revealing a strong divergence in sales, food, household goods and other non-food items all increased sales by value on the month by 15.3%, 18% and 16.4% respectively, the ONS said. | |
Supermarkets reported a strong increase in volume sales, at 10.3%, while off-licence sales of alcohol soared 31.4% in volume terms. Online sales jumped to more than 22% of all sales, compared with an average of 18% over the last year. | |
Department store sales rose by 2.8% month on month, though the increase appeared to be due to purchases of food and other items online. | Department store sales rose by 2.8% month on month, though the increase appeared to be due to purchases of food and other items online. |
The ONS said: “Comments from food store retailers suggested that panic-buying, or stockpiling during the coronavirus pandemic, was a big factor in the increased sales, particularly for supermarkets.” | The ONS said: “Comments from food store retailers suggested that panic-buying, or stockpiling during the coronavirus pandemic, was a big factor in the increased sales, particularly for supermarkets.” |
The statistics agency also confirmed that April was likely to bring even bigger falls. It said retailers responded to its survey between 1 March and 4 April 2020, meaning that two weeks of the five-week trading period were under physical distancing measures introduced before the lockdown. | |
Thomas Pugh, an economist at consultancy Capital Economics, said: “With widespread lockdowns only beginning around the middle of March, retail spending looks like it will fall by much more in April, perhaps around 20-30% month on month. | |
“Clearly there is huge uncertainty as to how deep the downturn proves and how long restrictions remain in place, a fall in the region of 25% in GDP over the next few months seems likely.” | “Clearly there is huge uncertainty as to how deep the downturn proves and how long restrictions remain in place, a fall in the region of 25% in GDP over the next few months seems likely.” |