[ad_1]
British retailers have warned of the increasing risk of store closings and job losses across the country after consumer spending fell to record lows in April since comparable records began when the coronavirus blockade occurred.
Reflecting the impact of closure measures across the country, the British Retail Consortium said sales fell 19.1% last month compared to April last year, in the biggest drop since the store’s trade body Street and online began recording sales in January 1995.
After Boris Johnson announced plans to keep most stores closed until at least June, the figures showed that consumer spending on non-food items, in stores like fashion, furniture and jewelry stores, collapsed in more one-third in the last three months.
With much of the street closed until at least the beginning of summer, Helen Dickinson, executive director of the BRC, warned that companies may be forced to close, threatening jobs and harming local communities, without continued government support.
He added: “Monday’s recovery strategy was a missed opportunity to provide a clear and detailed roadmap, outlining when and how stores will reopen after June 1, so that retail can help the economy move. and the public can get all the goods they need. “
Despite the precipitous drop in street spending, the figures revealed a boom in online sales and for essential stores that remained open. Excluding stores that have been forced to close, consumer spending increased 5.7%.
Reflecting an increase in stocks at the start of the crisis in March, food sales increased in the three months to April by 6%. Online sales, excluding food, increased 57.9% in April, significantly above the average annual growth rate of 8.5%.
Computer equipment, appliances, as well as toys and baby equipment were among the products in greatest demand. With the country largely limited to staying home during the health emergency, shoppers also rushed to buy game consoles, bicycles, knitting and sewing supplies, and office equipment to work at home.
Dickinson said the coronavirus outbreak had accelerated buyers’ tendency to buy more and more products and services online. “It is likely that as the closure progresses, these new buying habits will take root for many consumers.”
Separate figures from Barclaycard, which handles almost half of all credit and debit card transactions as Britain’s largest credit card provider, indicated that sales collapsed by 36.5% in April compared to the previous year. .
The figures also revealed a dramatic increase in food purchases in supermarkets as more Britons prepared meals at home, with sales increasing by 14.3%.
In a possible sign of long lines at large retail outlets and the difficulty of obtaining spaces for online delivery, the figures also showed that specialty food and beverage stores, including licenses, greengrocers and independent convenience stores, They recorded an increase of almost 40% in sales, as buyers. continued to support local businesses. Online spending on home improvement and DIY also increased by a quarter.
According to a survey of 2,000 adults conducted for Barclaycard, nearly nine in 10 said they had saved money on daily expenses since the shutdown began. However, confidence in job security fell sharply to 42%.
Esme Harwood, director of Barclaycard, said: “It has been a difficult time for retailers as consumer spending has been reduced considerably under the blockade.” However, there are some bright spots as the British have turned their attention online and are looking for takeaways, digital subscriptions, and DIY to keep themselves entertained and busy.
“A renewed sense of community may be good news for independent businesses, with a growing desire to support local stores in life after closing.”
