Tag Archives: BRC

UK retail enjoys best quarter on record as sales surge 13.1 per cent

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Retail sales have seen a record increase over the past three months, amounting to the ‘best quarter on record’ with shoppers returning to stores in force since the easing of lockdown restrictions back in April.

According to the latest BRC-KPMG retail sales monitor, total sales in June increased 13.1 per cent against a decline of 1.3 per cent in June 2019, fuelled by stores re-opening and the continued allure of online shopping.

On a like for like basis, UK retail sales increased 17 per cent from June 2019, when they had decreased 1.6 per cent from the preceding year.

Helen Dickinson, chief executive of the British Retail Consortium, said: “The second quarter of 2021 saw exceptional growth as the gradual unlocking of the UK economy encouraged a release of pent-up demand built up over previous lockdowns.

“In June, while growth in food sales begun to slow, non food sales were bolstered by growing consumer confidence and the continued unleashing of consumer demand. With many people taking staycations, or cheaper UK-based holidays, many have found they have a little extra to spend at the shops, with strong growth in-store in June.”

The good news for retail hasn’t, however, come without its warning, and Dickinson has suggested that UK retail is still ‘facing strong headwinds’ with many retailers ‘still making up for ground lost during the previous lockdowns.’

Footfall in city centres remains low, while international tourism is still well below pre-pandemic levels.

“Consumer comfort with the next stage of the roadmap will be key to the ongoing success of retail. Many customers are looking forward to a return to a more normal shopping experience, while others may be discouraged by the change in face covering rules.

“The government will need to reassure the public on safety, while pushing forward with its hugely successful vaccination programme.

“The public will also need to be understanding of one another during the easing of restrictions; there has been a big rise in violence and abuse against retail workers during the pandemic and colleagues cannot be put in the firing line because of this change in policy.”

Paul Martin, UK head of retail at KPMG, added: “Retail sales growth continued in June, albeit at a slower rate as the re-opening of hospitality and leisure sectors led to a dilution in consumer spending. The fight for share of wallet is underway, as consumers unleash pent up demand for social activities as restrictions in the UK continue to unwind.

“While the high street saw continued growth in June, with sales up 10 per cent, online sales fell back by seven per cent compared to June 2020.  However, penetration rates for online sales remain much higher than their pre-pandemic levels, suggesting the shift to online is here to stay.

“Retailers are facing challenges on a number of fronts, particularly convincing consumers that it’s safe to shop in store as restrictions around mask wearing and social distancing come to an end. With travel now looking to be back on the agenda for summer and Government COVID-19 support packages slowly coming to an end, retailers will be hoping that the feel good factor from Euro 2020 and lifting of COVID-19 restrictions will give the high street the summer boost it needs.”

Retail warns of “revenue-crushing” impact on sector should click-and-collect ban spread

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The British Retail Consortium and Scottish Retail Consortium have warned that the curb on non-essential click and collect services could prove ‘disastrous for an already beleaguered retail industry,’ with far wider implications for the UK’s retail sector should the ban widen.

The warning has been issued since yesterday’s breaking announcement that Scottish first minister, Nicola Sturgeon was to impose a ban on non-essential click and collect services for shops across Scotland.

It followed plans detailed by John Lewis Partnership to halt its own click and collect services across the UK in a bid to help the government drive down non-essential travel.

Both moves have been met with disappointment by the retail industry who has united in voicing concerns over the impact it would have on the sector, should the ban spread UK-wide. Until now, retailers have relied on their click and collect efforts to weather a relentless storm of lockdowns and social restrictions that have heavily impacted footfall and business as customers turn to online shopping.

Click and collect services of the non-essential retailers have been their life-line and, in many cases, their last remaining link to local communities, themselves driven to spend more with online giants such as Amazon.

Tom Ironside, director of business and regulations at the British Retail Consortium, said: “Click and collect is used by a wide array of companies and allows the public to get many of the goods they need in a safe, convenient and timely manner.

“Retailers have implemented systems to ensure people are kept safe while queueing and collecting goods, and we have seen no evidence to suggest otherwise.

“Preventing people using click and collect services would harm the viability of many retailers, already suffering under lockdown, as well as severley limiting the choice for some consumers.”

David Lonsdale, director of the Scottish Retail Consortium has called the restrictions now set to come into force from Saturday, January 16th as “revenue crushing”.

“The situation with the pandemic is fast moving and we fully recognise government wants people to stay at home. However, these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.

“Firms operating click and collect or food to go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice.

“They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.”