Retail sales continue to rise but pace of growth eases - BRC
By Abigail Townsend
Date: Tuesday 10 Nov 2020
(Sharecast News) - **EMBARGOED UNTIL 00.01 TUESDAY 10 NOVEMBER 2020**
Retail sales continued to improve in October, according to a widely-watched survey released on Tuesday, but the pace of growth eased ahead of fresh lockdown measures coming into effect this month.
The BRC-KPMG Retail Sales Monitor reported a 4.9% jump in total sales in October compared to a decline of 0.3% in October 2019.
It was down on the previous month's growth of 5.6%, however, and below some forecasts. Pantheon Macroeconomics had predicted total sales would rise by 6.0%.
On a like-for-like basis, sales rose 5.2% year-on-year, compared to a 6.1% increase in September. In October, underlying sales were measured by excluding temporarily closed stores but including online sales.
In the three months to October, in-store sales of non-food items declined 11.4%, or by 9.0% on an underlying basis. That was better than the 12-month total average decline of 19.6%.
Non-food retail sales rose 4.0% in the three months to October, above the 12-month total average decline of 4.7%.
Food sales, which benefited from Halloween falling on a Saturday and from shoppers stocking up ahead of the November lockdown, increased 5.2% over the same period on a like-for-like basis.
Helen Dickinson, chief executive of the British Retail Consortium, said: "October saw another month of strong sales growth, with food, gifts and loungewear high on peoples' shopping lists."
But she warned: "During an incredibly challenging year for the industry, many retailers had finally thought that they were finding their footing. The new lockdown in England will now throw away this progress as we enter the crucial Christmas trading period."
The BRC is predicting £2bn of sales per week will be lost during the lockdown, which started on Thursday 5 November and is scheduled to continue until 2 December. All non-essential shops have been ordered to close.
"It is vital retailers are able to trade from 3 December and we are asking the government to urgently provide clarity about the criteria for reopening," said Dickinson
Don Williams, retail partner at KPMG, said "testing times" lay ahead, adding: "The important golden quarter is likely to unrecognisable this year, with some retailers losing a month's worth of trading opportunity.
"Capacity is also likely to be a significant challenge over the coming months, as there is a limit to online delivery availability and social distancing as reduced the numbers of customers that can safely shop in store at any one time.
"Some retailers will thrive in the new environment, others will find it bleak."
The two biggest-selling categories during October were computing and household appliances. Footwear and clothing were the weakest categories.
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