Retailers Brace for Uncertainty Amid Online Shift and Government Support
- Retail sales decline by 5.9% in May
- Online sales drive the increase of 7.9% on a like-for-like basis compared to last year
- Non-food retail sales decrease by 21.8% on a total basis
- Food sales show an increase of 5.6% and 8.7% on a like-for-like basis
- Online non-food sales surge by 60.2% in May
- Retailers face challenges as they reopen amid pandemic recovery
- High street demand uncertain after June 15th
- Government support needed for struggling retailers
May marked another challenging month for retailers, with total sales down by 5.9% according to the BRC-KPMG retail sales monitor. Although less severe than April’s 19.1% drop, it remains the second worst decline since 1995. In-store non-food sales fell 50.3% and 21.9% on a like-for-like basis over three months to May. Food sales increased by 5.6% and 8.7%. Online non-food sales skyrocketed by 60.2%, up from 4.4% the previous year. Paul Martin, UK head of retail at KPMG, noted that essential and online retailers fare better than physical stores. He added that Covid-19 has accelerated the shift towards less physical presence to cut costs for survival. Online sales now account for over 60% of transactions. Helen Dickinson OBE, BRC CEO, expressed concern about weak consumer confidence and high fees potentially forcing shops to close. She urged for rent negotiations and government support.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in retail sales, including specific percentages and comparisons to previous months and years. It also includes relevant quotes from experts in the field that offer insight into the current state of the industry and potential future implications.
Noise Level: 4
Noise Justification: The article provides relevant information about the decline in retail sales during May and highlights the impact of COVID-19 on the industry, including the shift towards online shopping and concerns about the future of physical stores. It also includes quotes from experts in the field. However, it could benefit from more analysis or discussion of potential long-term trends or solutions for struggling businesses.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry
Financial Rating Justification: The article discusses the decline in retail sales and the impact of COVID-19 on the retail sector, which can affect companies’ financial performance and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the impact of COVID-19 pandemic on retail sales, but it does not mention an extreme event in the last 48 hours.
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