Retail sales fell in November as high street stores were hit by lockdown

UK retail sales volumes declined in November as stores were forced to temporarily close during England’s second national lockdown, new figures show.
Two women wearing face masks with Christmas decorations in Covent Garden in LondonTwo women wearing face masks with Christmas decorations in Covent Garden in London
Two women wearing face masks with Christmas decorations in Covent Garden in London

The Office for National Statistics (ONS) said retail sales volumes fell 3.8% last month compared with October.

However, the ONS said overall sales remained above pre-pandemic levels amid continued strong growth in online sales.

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It was above the expectations of analysts, who had forecast a 4.1% slump in retail sales for month.

Lower clothing sales were a significant factor contributing to the slump, the ONS said, tumbling by 19% compared with the previous month.

In November, food and household goods were the only sectors to show growth in monthly volume of sales, with improvements of 3.1% and 1.6% respectively as stores remained open due to essential status.

The ONS said retailers suggested that food sales in November were boosted by restrictions to hospitality operators such as bars and restaurants.

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Online sales continued to surge as consumers completed Christmas shopping digitally while stores were shut, with online sales 74.7% higher than the same month last year.

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.

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“Food sales, especially click and collect, were boosted as people were not able to eat out.”

Ulas Akincilar, Head of Trading at the online trading platform, INFINOX, said: “November’s patchwork of lockdowns across the UK turned what should be a busy month for retailers into a dysfunctional one.

“Despite the headline falls in sales, in the circumstances these figures are far from bad. Overall volumes were up 2.4% on the same time last year, as some shoppers brought forward their Christmas spending.

“But that success came at the cost of profitability as prices were slashed. Black Friday stretched over weeks rather than a weekend, in terms of discounting if not footfall.

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“With non-essential physical shops closed for much of the month, a huge chunk of the action moved online. Internet retailers claimed almost one in every three Pounds spent during the month, up 75% on their share of spend in November last year.

“Meanwhile tumbleweed on the high street continued to tear into the turnover of stores with a big physical presence."