Pre-lockdown boost sees retail sales up 4.9%

UK retail sales increased by 4.9% on a total basis in the four weeks ended 31 October 2020, according to the latest BRC-KPMG retail sales monitor.

In October, UK retail sales increased 5.2% against the 0.9% decrease the preceding year. During this period, like-for-like sales were measured excluding temporarily closed stores but including online sales.

Over the three months to October, in-store sales of non-food items declined 9% on a like-for-like basis and 11.4% on a total basis, proving to be better than the 12-month total average decline of 19.6%.

Food sales reported an increase of 5.2% in the recorded period and 5.8% on a total basis again, higher than the 12-month total average growth of 4.2%.

Don Williams, retail partner at KPMG, said: “This is an impressive performance by retailers, especially given the tighter household restrictions in October, but testing times lie ahead. Online sales remain high and are set to grow further during Black Friday and lockdown.”

During the three month recorded period, non-food retail sales increased by 5.7% on a like-for-like basis and 4% on a total basis, rising above the 12-month total average decline of 4.7%. For the month of October, non-food was in growth year-on-year.

Online non-food sales reportedly increased by 39% in October, against a growth of 3% in October 2019. This was in line with the three month average of 39.2% and above the 12 month average of 28.9%.

Non-food online penetration rate increased from 31.7% in October 2019 to 42.3% this October.

Helen Dickinson OBE and CEO of British retail consortium said: “October saw another month of strong sales growth, with food, gifts and loungewear high on peoples’ shopping lists.

“The disparity between online and in-store non-food sales widened, with the highest online penetration rate since June. Non-food stores once again experienced double-digit decline due to low footfall as more office workers returned to home working.”

She added: “The new lockdown in England will now throw away this progress as we enter the crucial Christmas trading period and we estimate that £2bn of sales per week will be lost this month.

“It is therefore vital that retailers are able to trade from 3rd December and we are asking the government to urgently provide clarity about the criteria for reopening and to ensure that affected businesses are supported in the coming months.”