Retailers see the first fall in sales since the initial lockdown in the spring as new Covid curbs hit the High Street
- Retail sales volumes fell 3.8% in November, the first fall in six months
- Clothing retailers saw biggest slump of 19%
- Only food and household retailers saw sales rise – by 3.1% and 1.6% respectively
- Online sales continue to rise, up 6.3% over the month and 75% on last year
The second national lockdown saw retail sales record their first fall since April November as Covid restrictions once again forced non-essential shops to close down.
Retail sales volumes fell 3.8 per cent last month, with clothing retailers suffering the biggest slump as the sector recorded a 19 per cent decline since October, figures by the Office for National Statistics show.
But November’s decline was limited by a sharp pick-up in online sales and healthy spending in supermarkets and other essential retailers.
Retail sales fell last month as non-essential shops were forced to close due to a new lockdown
Almost one in every three pounds spent during the month was spent online, as online sales now make up 31.4 per cent of total retail sales, up from 28.6 per cent in October.
Online sales rose 6.3 per cent over the month and are up a massive 75 per cent compared to last year, helped by heavy discounts and Britons completing their Christmas shopping digitally.
This week, separate ONS figures showed inflation fell to 0.3 per cent thanks to the biggest annual fall in clothing and footwear prices in a decade, due in part to unusually large Black Friday discounts.
The ONS said feedback from retailers suggested that, as well as the impact of physical store closures, there was evidence that shoppers began buying Christmas gifts earlier this year.
November’s fall in sales was also limited by strong sales of food and household goods, which were the only sectors to show growth during the month, rising 3.1 per cent and 1.6 per cent respectively.
The ONS said retailers suggested that food sales in November were boosted by restrictions to hospitality operators such as bars and restaurants.
Retail sectors: Clothing and fuel were particularly hit by the winter lockdown
Deputy national statistician for economic statistics Jonathan Athow said: ‘After a run of strong growth, retail sales fell back in November as restrictions meant many stores had to close their doors again.
‘Clothing and fuel were particularly hit by the winter lockdown, with their sales falling sharply.
‘Household goods and food shops were the only areas to see their monthly sales increase, with feedback from stores suggesting consumers brought forward their Christmas spending, particularly on festive home products and DIY.
‘Food sales, especially click and collect, were boosted as people were not able to eat out.’
Retail sales main figures for November
Aled Patchett, head of retail and consumer at Lloyds Bank, said November’s sales highlighted once again the polarising effect of Covid-19 on retail.
‘Subsectors like grocery and homeware perform well – and should be expected to have a strong finish to the year – while others including big-name high street brands fall foul of significantly reduced footfall,’ he said.
‘Despite most shoppers having wrapped up their Covid Christmas shopping online this year, shops – particularly in smaller towns – will be hoping that the vaccine rollout inspires greater consumer confidence in the New Year as people return to city centres for both work and play.’