Non-Food Spending Takes a Hit, Food Sales Surge

  • UK retail sales to fall by £12.6bn due to Covid-19 impact
  • Retail market expected to reach £333.7bn, down 1.7% from last year
  • Clothing and footwear spending to drop by 20.6%
  • Food and grocery sales to grow at an unprecedented rate of 7.1%
  • Non-food spend forecasted to drop by 8.9%
  • Impact worse than the 2009 financial crisis

The coronavirus pandemic is expected to wipe £12.6 billion off UK retail sales this year, according to GlobalData’s latest forecast. The total retail market will reach £333.7 billion, down 1.7% from the previous year. Clothing and footwear spending is predicted to fall by 20.6%, significantly worse than the initial growth forecast of 0.6%. Food and grocery sales, however, are expected to grow at an unprecedented rate of 7.1%, adding £6.8 billion to the previous forecasted annual spend. This surge in food sales is attributed to higher demand at supermarkets due to the pandemic’s impact on foodservice operators. Patrick O’Brien, UK retail research director at GlobalData, said, ‘The impact on non-food is far worse even than during the financial crisis of 2009 when sales fell 2.9%.’

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information based on a forecast by GlobalData, a data and analytics company. It presents the impact of the coronavirus pandemic on different sectors of the retail market with relevant details and comparisons to previous forecasts. The article also includes expert commentary from Patrick O’Brien, UK retail research director at GlobalData, which adds credibility to the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the coronavirus pandemic on retail sales and offers a comparison between different sectors. It also includes expert analysis from GlobalData’s UK retail research director, Patrick O’Brien. However, it could benefit from more in-depth analysis or context on how these changes may affect various stakeholders (e.g., consumers, businesses, the economy) and potential long-term consequences.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector and food and grocery market
Financial Rating Justification: The article discusses the impact of the coronavirus pandemic on retail sales, specifically clothing and footwear spending, as well as the growth in food and grocery sales. This affects various companies within these sectors and impacts financial markets through their stock prices and overall economic performance.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Health Crisis
Impact Rating Of The Extreme Event: Major
Extreme Rating Justification: The coronavirus pandemic has caused a significant impact on the retail industry, with a £12.6bn loss in sales and a 1.7% decrease in total market value. Clothing and footwear spending is expected to fall by 20.6%, while food and grocery sales are growing at an unprecedented rate due to higher demand during the crisis.

Reported publicly: www.retailsector.co.uk