Coronavirus and stormy weather dampen high street sales
High street sales slumped for the seventh February in a row last month as coronavirus fears and stormy weather hurt footfall.
In-store like-for-like sales dropped 0.9 per cent last month from a base of minus 3.7 per cent in February 2019 as shoppers abandoned the high street amid mounting fears over the outbreak of Covid-19.
Valentines Day failed to lift sales in the lifestyle category which dipped 2.9 per cent from minus 4.9 per cent last year.
Homeware sales were also hit by high street gloom, diving 3.6 per cent during the month.
Fashion sales lifted 0.3 per cent, but failed to offset the negative base of minus 3.5 per cent last year, according to the latest research by accountancy firm BDO.
Online sales growth also slumped, with non-store sales rising six per cent compared to 12.4 per cent last year, marking the second worst performance in 10 years.
Separate research published on Wednesday by Retail Economics showed that almost half of UK retailers have suffered a slump in sales due to coronavirus, with more anticipating a sharp drop in consumer confidence due to the outbreak.
BDO head of retail and wholesale at Sophie Michael said: “Bad weather and concerning headlines contributed to an already difficult trading environment in February. The poor performance in non-store sales contributed further to a disastrous month for retail across the board.
“It’s clear that shoppers are still exercising extreme caution. While some of last year’s uncertainty dissipates, it seems it’s being replaced with increased volatility.
“As the news of the impact of coronavirus continues to spread and Britain’s high streets take a hit from February’s extreme weather, many retailers will feel the impact of the higher costs needed to absorb the disruption within their supply chains.”