In December, UK fashion retail sales faced significant challenges, with online sales also failing to meet expectations. According to BDO’s High Street Sales Tracker (HSST), online sales saw their weakest performance since March, despite a 62% increase in like-for-like sales compared to the previous year. This sheds light on the fragility of the UK retail sector, especially during a time of fluctuating lockdown measures.
The struggles were not limited to online sales alone. Overall retail sales, which include both physical stores and e-commerce, saw their first negative like-for-like monthly sales since records began, experiencing a 1.6% decrease. While this was an improvement from the same period in 2018, it underscored the tough environment retailers are facing.
Fashion retailers bore the brunt of the challenges in December, with a significant 6.2% decline in like-for-like sales compared to a 4.5% increase in the previous year. The fashion sector has now endured 10 consecutive months of negative sales, highlighting the profound impact of the pandemic on consumer spending patterns.
Despite a strong start to the month, where total like-for-like sales spiked by 11.22% in the first week compared to the previous year, the imposition of Covid restrictions and lockdowns led to a sharp decline in sales in the subsequent weeks. By the end of December, total like-for-like sales had plummeted by 23.18% due to the stricter tier systems implemented in England.
With nine out of 12 months in 2020 experiencing negative sales outcomes, it is evident that the pandemic has taken a heavy toll on the UK retail sector. As retailers continue to face uncertainties and challenges, the path to recovery remains unclear.
For more information on the impact of the pandemic on the UK retail sector, you can visit Retail Gazette or BBC Business News.
