🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UK retail sales plunge 19% in April as COVID lockdown hits - BRC

Published 13/05/2020, 00:08
© Reuters. FILE PHOTO: The spread of coronavirus disease (COVID-19) in Hemel Hempstead
BARC
-

LONDON (Reuters) - British retail spending plunged by nearly a fifth in April as the government's coronavirus lockdown hammered the sector, and a broader measure of consumer spending tumbled by more than a third, surveys showed on Wednesday.

The British Retail Consortium said its members reported a 19.1% drop in total sales last month compared with April last year, the biggest fall since it began its monthly index in 1995.

Barclaycard, part of Barclays Bank (L:BARC), said credit and debit card spending plunged by 36.5% compared with a year earlier as spending on travel, pubs and restaurants collapsed.

British Prime Minister Boris Johnson shut down much of the economy and ordered people to stay largely at home in late March in an attempts to slow the spread of COVID-19.

Last week the Bank of England said it was plausible that both consumer spending and broader economic output would fall by around a quarter during the three months to June, and that output for 2020 could suffer its biggest hit in over 300 years.

Over the three months to April, in-store sales of non-food items plunged by 36.0% while food sales over the period rose by 6.0% as consumers stocked up on essentials for the government's coronavirus shutdown, the BRC said.

By contrast, online non-food sales leapt by nearly 60% in April to account for more than two thirds of non-food spending.

"As the lockdown wears on, these new shopping habits – such as the trend towards online purchases - will become more entrenched for many consumers," BRC chief executive Helen Dickinson said.

Barclaycard said spending at pubs and restaurants had fallen by 97%, but supermarket sales were up by 14% and online spending on home improvements increased by 27%.

© Reuters. FILE PHOTO: The spread of coronavirus disease (COVID-19) in Hemel Hempstead

Almost nine in 10 adults have saved money on everyday expenses since the lockdown began but confidence in Britain's economy dropped to its lowest for at least six years with just 20% of adults feeling positive, it added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.