Coronavirus sparks worst year on record for UK retail sales growth

Total UK retail sales declined 0.3% in 2020 compared with 2019, according to research by the BRC and KPMG.

This is a record low (records began in 1995). Food growth was 5.4%, whilst non-food decline stood at 5% for the year as the coronavirus outbreak hit many retailers hard.

Helen Dickinson, Chief Executive at British Retail Consortium, says: “Covid-19 has led to 2020 being the worst year on record for retail sales growth. Physical non-food stores – including all of ‘non-essential’ retail – saw sales drop by a quarter compared with 2019.”

Christmas offered little respite for these retailers, as many shops were forced to shut during the peak trading period. Although this did lead to a rise in food-based gifts as many shoppers bought what they could from the shops that were still open.

“With shops still closed for the foreseeable future, costing stores billions in lost sales, many retailers are struggling to survive,” Dickinson adds.

“To avoid the unnecessary loss of shops and jobs government should announce an extension to business rates relief for the worst affected businesses as soon as possible. With many retailers making decisions over their future, the government must act decisively.”

Paul Martin, UK Head of Retail at KPMG, comments: “Conditions will continue to be challenging as we enter another national lockdown.”

“Consumer behaviour will also continue to evolve and retailers must embrace the changes if they are to hold on to hard won customers and generate profitable sales.”

He concludes: ”Looking ahead, fortunes will be mixed but pent up savings and a successful vaccine roll out will help support recovery in the retail sector later in the year.”

“Retailers will also be hoping that the reopening of high streets and shopping centres will see a return to more normal levels of footfall.”