2019 one for the UK retail record books but not in a good way

2019 was the worst year on record for UK retailers and the first one to show an overall decline in sales, according to research by the BRC and KPMG.

Total sales for 2019 decreased by 0.1%, compared with 1.2% growth in 2018. The year was dominated by CVAs, shop closures and job losses. Against this backdrop, the UK twice faced the prospect of a no deal Brexit, as well as political instability that concluded in a December general election, further weakening demand for the festive period.

At first glance, December was a decent month, with total sales up 1.9%. However, the later timing of Black Friday will have skewed the outcome. If looking at November and December combined, sales actually declined by 0.9%.

“The industry continues to transform in response to the changing technologies and shopping habits. Black Friday overtook Christmas as the biggest shopping week of the year for non-food items. Retailers also faced challenges as consumers became both more cautious and more conscientious as they went about their Christmas shopping,” says Helen Dickinson, Chief Executive at the British Retail Consortium.

The public’s confidence in Britain’s trade negotiations will have a big impact on spending over the coming year, she adds. There are many ongoing challenges for retailers: to drive up productivity, continue to raise wages, improve recyclability of products and cut waste.

“However, this takes resources, so it is essential the new government makes good on its promise to review, and then reform the broken business rates system which sees retail pay 25% of all business rates, while accounting for 5% of the economy,” Dickinson concludes.