Little cause for optimism as UK retailers battle coronavirus
July saw the second month of growth for UK retailers as coronavirus lockdown measures eased and demand gradually began to return in some places, according to research from the BRC and KPMG.
On a total basis, sales increased by 3.2% in July, against a rise of 0.5% in July 2019. This was above the three month average growth of 0.4% and the 12 month average decline of 1.9%.
Helen Dickinson, Chief Executive at British Retail Consortium, says: "Many shops continued to struggle as footfall was down, with many people still reluctant to go out, and fewer impulse purchases.”
The strongest performance came from food, furniture and homeware, as consumers increasingly invest in their time at home. However, many shops, particularly in fashion, jewellery and beauty, are still struggling to survive. Online sales remained buoyant, slowing only slightly despite more shops reopening.
“While the rise in retail sales is a step in the right direction, the industry is still trying to catch up lost ground, with most shops having suffered months of closures,” Dickinson comments.
“The fragile economic situation continues to bear down on consumer confidence, with some retailers hanging by only a thread in the face of rising costs and lower sales. Rents are also continuing to accumulate and the next Quarter Rent Day could see many otherwise viable businesses fall into insolvency, costing stores, jobs and economic growth."
The BRC is calling on the government to adopt the proposal from landlords and tenants for a Property Bounceback Grant, which, it claims, would deliver £7 billion in tax revenue to the Exchequer and save 375,000 jobs.
