May presents another testing month for UK retailers
Total UK retail sales decreased by 5.9% in May, against a slump of 1.9% in May 2019, according to research from the BRC and KPMG.
This is the second worst decline recorded since their monitor began in January 1995. It is less drastic when compared to April’s fall of 19.1%, although it should be noted that the research compares performance to the record low of May 2019.
“We’re witnessing historically high levels of sales transacted online – currently over 60% – and while this will ease as more stores open, consumers have formed new habits that will see the online channel continue to be more prominent going forward,” says Paul Martin, UK Head of Retail at KPMG.
As the sun came out and restaurants lay dormant, food sales rose with consumers taking to their local parks for beers, BBQs and picnics. Clothing and beauty sales improved slightly on April, as people left their homes to meet outside with friends and family.
Continuing the lockdown trend, office supplies, fitness equipment and bicycles all performed well, thanks to strong online sales and DIY was boosted by the opening of garden centres.
Yet for those stores whose doors remain shuttered it was once again a tough month and even those who stayed open suffered reduced footfall and huge costs implementing social distancing measures, observes Helen Dickinson, Chief Executive at British Retail Consortium.
"While the month showed record growth in online sales, many retailers will be anxious to see whether demand returns to our high streets when non-essential shops reopen from 15th June. Weak consumer confidence and social distancing rules are likely to hold back sales,” she says.
“Furthermore, there are concerns that if government support is withdrawn too quickly, shops and businesses will not survive. Until the situation improves, retailers urgently need support on rents and negotiations with their landlords as high fees could force some physical retailers to shut for good.”