Help for high streets as retail sales surge 9.2% after lockdown hibernation ends

Retailers have enjoyed a surge in sales as stores dubbed non-essential were able to emerge from an enforced winter hibernation during April.

Figures from the Office for National Statistics (ONS) showed volumes rose 9.2% last month from March after COVID-19 restrictions were lifted from 12 April in England and Wales and two weeks later in Scotland, unleashing pent-up demand following months of closures.

The growth was way better than economists had expected and marked the start of a recovery for a sector that has felt some of the deepest employment pain during the crisis to date, with the likes of Sir Philip Green’s Topshop empire and Debenhams being erased from town centres.

The fightback was led by fashion and other non-food stores.

The ONS charted a leap of almost 70% in clothing sales on a monthly basis, supporting corporate updates from the likes of Primark and Superdry that they enjoyed record levels of sales as tills sprung back to life.

Online sales were down by 5.6% month-on-month though the report said that online-only retailers had been the biggest winners during the crisis to date with sales up 56% when compared to April 2019.

Petrol stations were among those to suffer most with working from home orders driving sales 13.3% lower.

The number-crunchers said the wider industry’s recovery during April left sales volumes 42.4% higher on a year earlier and 10.6% above their pre-crisis level but there was evidence to suggest that pent-up demand had now peaked.

ONS deputy national statistician Jonathan Athow said: “Clothing sales soared by nearly three quarters as consumers took advantage of being able to visit physical stores.

“Perhaps unsurprisingly, overall online sales dipped, but still remain high.”

The figures build on evidence the economic recovery, from the worst annual performance in more than 300 years, has been accelerating since March.

Our latest data show that retail sales increased by an estimated 9.2% in April 2021 compared with March 2021 https://t.co/bEdv1zRsd2 pic.twitter.com/BRdihEdrbX

It has been aided by richer households being able to build up savings throughout the crisis though high street stores will be competing with restaurants, pubs and holiday firms for a share of this bounty.

A measure of consumer confidence released by GfK on Friday found levels at their highest since March 2020 – recovering all the ground lost to the pandemic.

Lisa Hooker, consumer markets leader at PwC, said of the ONS figures: “The good news for high streets is that there’s no sign of a permanent shift to online shopping, with the proportion of internet sales dropping from a high of 34.7% in March down to 30% as shops re-opened their doors.

“Retailers will be hoping that this momentum continues into the rest of spring and summer, as Britain continues to unlock and consumer confidence builds with warmer weather and the continued rapid rollout of vaccines.”

Read Entire Article