Retail sales slump in November on fresh virus lockdown; Food sales remain strong

UK retail sales slumped 3.8 percent in November from a month earlier as England suffered a second coronavirus lockdown, official data showed Friday.

The slide was capped however by strong food sales and as customers brought forward Christmas spending, the Office for National Statistics said.

Despite the sharp fall between October and November, the biggest decline since the first lockdown in April, overall sales volumes remained above their pre-pandemic levels, it added, helped by strong online buying.

“After a run of strong growth, retail sales fell back in November as restrictions meant many stores had to close their doors again,” said ONS statistician Jonathan Athow.

“Clothing and fuel were particularly hit by the winter lockdown, with their sales falling sharply.

“Household goods and food shops were the only areas to see their monthly sales increase, with feedback from stores suggesting consumers brought forward their Christmas spending,” Athow said.

Friday’s data showed clothing sales down 19 per cent on the month, their biggest drop since April’s lockdown and almost a third lower than a year earlier. Food sales rose by 3.1 per cent, the most since March’s wave of panic-buying.

Fuel sales also fell, down 16.6 per cent on the month, as fewer people drove to work or leisure activities. Online sales rose to 31.4 per cent of total spending, the highest since June.

“Feedback from stores (is) suggesting consumers brought forward their Christmas spending, particularly on festive home products and DIY,” Athow said.

Consumer confidence showed its biggest jump in eight years as households welcomed the availability of coronavirus vaccines, according to a monthly survey from market researchers GfK released earlier on Friday.

“Despite lockdowns across most of the UK, the level of spending is still higher than where it was in August, and comfortably above its pre-virus level,” ING economist James Smith said.