Data released on Friday showed that UK retail sales fell sharply in November.
The Office for National Statistics (ONS) reported that UK retail sales declined by 3.8% in November, marking the end of a six-month streak of consecutive increases.
Causing the decline was stores shutting during a national lockdown. Over the last month, much of the UK has been in high-alert tiers which have seen shops and hospitality close. Just this Wednesday, the country’s capital was placed under a two week lockdown with millions affected.
The retail sector has been one of the brighter spots of a fragile UK economy during the COVID-19 period. Six consecutive months of increases in UK retail sales figures have gone a long way to keeping the UK economy afloat.
However, UK retail sales volumes fell by 3.8% last month, their biggest decline since the first lockdown in April. Although, generally in line with analysts’ predictions, Novembers figures will ring alarm bells after registering a 1.3% increase in October.
Lockdown Impact on Retail Sales
Interestingly, November’s decline emulated that of the US. As DailyInvestNews reported earlier this week, the US also saw its retail sales decline last month for the first time in seven months.
November’s figures will have included a bounce from ‘Black Friday’ retail activity. There will also be some festive shopping in the figures. However, the lockdown is having its effect. With department stores and retail outlets closed, November saw a 19% fall in clothing sales.
The effect of the lockdown and restricted travel also meant fuel sales shrank by 16.6%
Deputy national statistician for economic statistics Jonathan Athow told the BBC:
“After a run of strong growth, retail sales fell back in November as restrictions meant many stores had to close their doors again,”
“Clothing and fuel were particularly hit by the winter lockdown, with their sales falling sharply.”
Jonathan Athow
Another takeaway from Friday’s figures was the way in which the pandemic has changed UK shopping habits. Compared with 28.6% in November 2019, online retailing accounted for 31.4% of November’s total.
Lynda Petherick, head of retail at Accenture UKI. said of November’s UK Retail sales figures:
“In a month where England went back into lockdown and the UK as a whole was subject to tightening restrictions, it’s little surprise that physical retail sales growth stalled in November,”
“However, the show must go on when it comes to Christmas shopping, and some retailers have triumphed by preparing their e-commerce operations for the boom in online sales.
“Black Friday and early festive shopping continued to stimulate a sector so desperately trying to build recovery momentum.”
Lynda Petherick
