Retail sales drop amid continuing lockdown

Retail sales fell last week as a doubling of non-store business failed to offset plunging transactions in shops, a survey showed.
Like-for-like sales dropped 9.4% in the week ending 31 January from a base of +1.9% a year earlier, BDO’s high street sales tracker found. In-store sales plunged 84.3% with the country in a second severe lockdown, which helped drive non-store transactions up 105% – the fourth week running that sales doubled.

Footfall stayed weak and was down 64.6% from the same week a year earlier. Shopping centres had the worst decline with a 73.2% drop followed by a 72.7% decline on high streets and a 38% dip for retail parks.

Fashion sales fell 19.9% taking the number of consecutive weekly declines to five and registering the worst week since the depths of the first lockdown in May. Consumers have slashed spending on clothes with many people working from home and with few options for going out.

Lifestyle sales dipped 1.3% marking the eighth straight week of decline in total and a year of falling sales in stores. Homeware sales rose 13.9% compared with a 10% drop a year earlier as people spent money on their habitats with many stuck inside for extended periods.

“This week saw temperatures rise considerably, breaching 10ยฐC in the middle of the week while conditions remained overcast,” BDO said. “Weather in the equivalent week last year was highly changeable.”

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