Non-Food Items Sales Drop by 36.5%, Supermarkets Thrive

  • Retail sales decline hits lowest level since May 2020
  • Non-food items sales drop by 36.5% on a total basis
  • Lockdown measures disrupt trading
  • Supermarkets see food sales growth of 7.5%
  • Online non-food sales record high due to pandemic adaptations

January retail sales have experienced their lowest growth since May 2020, according to data from the British Retail Consortium (BRC) and KPMG. Total retail sales dropped by 1.3% compared to January 2020, with national lockdown measures continuing to impact trading. In-store non-food items sales declined 36.5% on a total basis and 19.8% on a like-for-like basis, worse than the 12-month average of 28.3%. Supermarkets, deemed essential, saw food sales grow by 7.5% on a like-for-like basis, higher than the 12-month average growth of 6.1%. BRC’s Helen Dickinson noted that the new variant has dampened consumer confidence and spending on clothing and footwear. Retailers have adapted by expanding online delivery and click-and-collect services, leading to record growth in online non-food sales.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in retail sales, cites sources (BRC and KPMG), and includes relevant quotes from an expert (Helen Dickinson). It does not include any irrelevant or misleading details, sensationalism, redundancy, personal perspective presented as fact, invalid arguments, logical errors, inconsistencies, or fallacies.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in retail sales during January due to lockdown measures and highlights the impact on non-essential retailers. It also mentions the increase in online sales as a result of the situation. However, it could benefit from more analysis or context on long-term trends or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the decline in retail sales and its impact on non-food items, which affects companies within the retail industry and may cause fluctuations in their stock prices and overall financial performance. It also mentions the growth of online sales, which can impact e-commerce companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk