Retailers suffer ‘another month of struggle’ in May amid coronavirus lockdown
Retailers endured a second consecutive monthly drop in sales in May, as the high street continued to suffer from the effects of the coronavirus lockdown.
The British Retail Consortium (BRC) said sales fell 5.9 per cent last month compared to May 2019.
The monthly health check found record growth in online sales, as retailers continued trying to adjust to unprecedented trading conditions. Online non-food sales, which covers everything from furniture to cosmetics, grew 60 per cent.
However, the figures will still make for grim reading within the industry, and mark the second-worst overall monthly decline since the monitor began in 1995, after April’s drop of 19.1 per cent.
BRC chief executive Helen Dickinson said May was “another month of struggle for retailers across the country”.
Most shops will be allowed to re-open on 15 June, however there is widespread anxiety about the effect social distancing rules will have on footfall.
Last month the BRC warned that shops face a “fight for survival” over the next few months as they try to get business up and running again amid the new regulations.
One glimmer of hope came in the supermarket and convenience store sector, which enjoyed a second month of soaring sales as shoppers focused on food supplies.
This was also helped by the hot weather and a slight easing of lockdown, with consumers flocking to local parks for beers, barbeques and picnics.
Analysis of shops that were allowed to stay open through the lockdown found that in May, like-for-like sales increased 7.9 per cent from the same month last year.
Dickinson added: “While the month showed record growth in online sales, many retailers will be anxious to see whether demand returns to our highstreets when non-essential shops reopen from 15 June.
“Weak consumer confidence and social distancing rules are likely to hold back sales. Furthermore, there are concerns that if government support is withdrawn too quickly, shops and businesses will not survive.
“Until the situation improves, retailers urgently need support on rents and negotiations with their landlords as high fees could force some physical retailers to shut for good.”
Paul Martin, head of retail at KPMG, said: “Stores may soon have the greenlight to re-open but it will be a gradual affair with safety front of mind, and some doors may not reopen at all.
“Covid-19 has acted as an accelerant in the shift towards having less of a physical presence, not least due to the obvious need to radically reduce costs for survival.”