Non-food sales plummet as consumers flock to supermarkets for essentials
- British retailers suffered one of the worst years on record for sales growth
- Total sales declined 0.3% compared with 2019
- Sales on non-food items witnessed a 5.0% dip due to national lockdowns
- Physical non-food stores saw sales drop by a quarter compared to 2019
- Christmas offered little respite for retailers as many shops were forced to shut during the peak trading period
- Sales on food items rose by 5.4% as consumers flocked to supermarkets in 2020
- Consumer behaviour will continue to evolve and retailers must adapt
- Retailers hope for recovery with reopening of high streets and shopping centres
- Pent up savings and successful vaccine rollout may support retail sector later in the year
British retailers faced one of their worst years on record for sales growth, with total sales declining by 0.3% compared to 2019, according to a study by KPMG and the British Retail Consortium (BRC). Non-food items, such as clothing, experienced a 5.0% drop due to lockdowns forcing retailers to close. The BRC also reported that food sales increased by 5.4%, as consumers stocked up on essential items at supermarkets. As consumer behaviour evolves and the vaccine rollout progresses, retailers must adapt to survive and hope for a recovery with high streets reopening.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (KPMG and BRC) about the decline in retail sales during 2020 due to lockdowns and the shift towards essential items. It also includes expert opinions on the future of the sector.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of lockdowns on British retail sales in 2020, with specific numbers and insights from experts. However, it lacks a deeper analysis or exploration of long-term trends or consequences for various stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector
Financial Rating Justification: The article discusses the decline in sales for British retailers, particularly non-food items, and its impact on their performance. This affects companies within the UK retail industry and can have implications for financial markets as well, such as stock prices of affected companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Although the retail industry faced significant challenges due to the pandemic and lockdowns, this article does not mention an extreme event in the last 48 hours.
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