Talking Retail Grocery and product news for independent retailers
The Office for National Statistics reveals that UK retail sales volumes grew 1.2% in October and volumes are now 6.7% higher than in February 2020.
The figures show food store sales fell 0.2% month-on-month, but were still 3.5% above the pre-pandemic level in February.
Meanwhile, retail fuel sales remained 8.8% below February’s figures because of a reduction in road traffic.
Richard Lim, chief executive of Retail Economics, said: “These numbers report punchy growth and provide strong evidence of shoppers starting their Christmas shopping earlier this year. Faced with uncertainty around further restrictions and fears about availability, spending has been shifted forward which will come at the expense of sales later in the year.
He added: “The second lockdown couldn’t have come at a worse time for the sector. Many retailers have been hanging on by a thread, waiting to trade through Christmas to strengthen balance sheets and position themselves the best they can heading into 2021. Those that don’t have sophisticated online propositions and the capacity to cope with the shift towards online will be under enourmous pressure.”
Mona Bitar, EY UK & Ireland consumer leader, said: “What would have been a 10-year transition from physical to online sales has happened in less than a year, and retailers need to act now with agility and focus. Doing so now will not only maximise their chances of thriving through the Christmas period, but position them for future growth in the long-term.”
