Lockdowns and Tier system impact retail sales in England

  • Covid restrictions led to first negative LFL sales in December
  • Total like-for-like sales declined by -1.6% in December
  • Inflated non-store sales failed to lift total sales onto positive ground
  • Weekly results showed promise at the beginning of December, but were impacted by rising Covid cases and restrictions
  • Final week saw total like-for-like sales plummet by -23.18%
  • Early January spending figures suggest shoppers stopped discretionary spend altogether
  • Retailers need further support to survive the latest lockdown

Retailers faced a disappointing end to the Golden Quarter due to heightened Covid restrictions and expanding lockdowns, according to BDO’s High Street Sales Tracker. Despite a strong start to December, total like-for-like (LFL) sales declined by -1.6% in December, with non-store sales failing to lift total sales onto positive ground. The first two weeks of the month showed promise, but the final week saw a plunge of -23.18% as the Tier system expanded across England. Sophie Michael, head of Retail and Wholesale at BDO, said shoppers stopped discretionary spend altogether during the winter lockdown, which may leave retailers with unsold winter stock. She added that further support is needed for survival and opportunities will arise upon recovery.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in retail sales due to Covid restrictions and lockdowns, citing data from BDO’s High Street Sales Tracker. It also includes expert commentary on the situation and its potential impact on retailers. However, it lacks a clear overall conclusion or summary of the main points.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of Covid restrictions on retail sales during the Golden Quarter, with data from BDO’s High Street Sales Tracker. It also includes insights from an expert in the field. However, it could benefit from more analysis or context on the long-term trends and potential solutions for struggling retailers.
Financial Relevance: Yes
Financial Markets Impacted: Retailers
Financial Rating Justification: The article discusses the negative impact of Covid restrictions on retail sales, which affects the financial performance of retail companies and can potentially impact their stock prices in the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the negative impact of Covid restrictions and lockdowns on retail sales, but does not mention an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk