Lifestyle sales drop by 16.7%, fashion sales decline for eleventh consecutive month
- Retail sales fell by 10% in January due to national lockdown and Covid-19 impact
- Lifestyle total like-for-like sales decreased to 16.7% in January
- Fashion sales dropped 12.1% from a solid base of 7.7% last year
- Eleventh consecutive month of negative total like-for-like sales for fashion
- Non-store sales soared to record highs at 132.8% amid lockdown restrictions
- Homeware sales increased by 6.7% from a base of 5.4% last year
- Ninth straight month of positive sales for homeware sector
- Retailers face uncertainty and challenges ahead
- Pressure on mid-market retailers as consumers shift to value and online platforms
Retail sales fell by 10% in January due to the national lockdown and the ongoing impact of Covid-19, according to BDO’s High Street Sales Tracker. Lifestyle total like-for-like sales decreased to 16.7%, marking the worst result since June last year and the second consecutive month of negative total like-for-like sales for the sector. Fashion total like-for-like sales dropped by 12.1% from a solid base of 7.7% in January last year, making it the eleventh consecutive month of negative total like-for-like sales for fashion. Non-store sales soared to their best result on record (132.8%) amid lockdown restrictions, preventing sales from falling to the depths of the first national lockdown. Homeware saw sustained positivity as total like-for-like sales climbed by 6.7% in January from a base of 5.4% for the equivalent month last year. BDO reports that total like-for-like sales for homeware have continued to ‘stand apart’ from other sectors, logging its ninth straight month of positive sales. Sophie Michael, head of retail and wholesale at BDO, said: ‘You would normally see positive growth at the start of the year thanks to post-Christmas sales, but this year retailers experienced a bleak January after a very lacklustre Christmas.’ She added that the future for retailers is ‘currently clouded by uncertainty’ with ‘significant challenges’ ahead. Retailers also face the challenge of predicting how and when consumers will return and at what level of spending, while adapting to potentially lasting new shopping habits across all age groups.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in retail sales due to the national lockdown and Covid-19 impact on shops. It cites specific numbers from BDO’s High Street Sales Tracker and includes expert commentary from Sophie Michael, head of retail and wholesale at BDO. The article also presents a balanced view of the situation by mentioning the increase in non-store sales and the challenges faced by retailers.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of Covid-19 on retail sales, specifically highlighting the decline in fashion and lifestyle sectors while noting the growth in non-store sales and homeware. It also includes insights from an expert on the challenges faced by retailers and potential changes in consumer behavior. However, it lacks a broader analysis or exploration of long-term trends or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the decline in retail sales, particularly in fashion and lifestyle sectors, due to national lockdown and Covid-19 impact on shops. This affects companies within these sectors and may lead to changes in consumer behavior and spending patterns.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Although the article discusses a significant decline in retail sales due to the national lockdown and Covid-19, it does not mention an extreme event that occurred within the last 48 hours. The impact is mainly economic rather than catastrophic or causing major damage or loss of life.
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