MNI DATA IMPACT: UK Retail Sales See Record Plunge In March

By Laurie Laird

     LONDON (MNI) - UK retail sales fell a record amount in March, as

already-cautious consumers stayed home after stores across the country shut up

shop in latter part of the month.

     The following are the main points from the March retail sales report

released by the Office for National Statistics Friday.

     - Retail sales plunged by 5.1% between February and March, taking volumes

5.8% below the level a year earlier, a record decline on both measures in a

series dating back to 1988.

     - Sales data were collected between March 1 and April 4, the first official

release to capture some of the halt to retail activity following the

announcement of a national lockdown on March 23.

     - Sales declined by 1.6% over the first quarter, the biggest fall since Q1

2010, which were dampened by heavy snow early that year. That means retail

activity will subtract 0.09 percentage points from Q1 GDP. Retail sales comprise

5.4% of GDP.

     - Shoppers had become much more cautious even ahead of the lockdown.

Rolling three-month sales have not recorded an increase since September of last

year, the longest stretch since the depths of the financial crisis in 2008/09.

     - Clothing sales took the biggest hit, as suggested in the MNI Reality

Check released on Thursday, plummeting by 34.8% between February and March.

Sales at household goods outlets slumped by 8.0%.

     - Supermarket sales jumped by a record-high 10.4%, confirming widespread

reports of stockpiling during the month. And in evidence of what British

shoppers consider to be essential goods, alcohol retailers reported a

record-high 31.4% surge in sales between February and March. Supermarket

retailers also reported increased demand for alcoholic products during the

month.

     - Department store sales bucked the trend, enjoying a 2.8% increase between

February and March, with many able to rely on online sales after shutting their

doors after March 23rd.

     - Internet sales surged by 8.3% in the month of February in value terms,

the biggest rise since December 2012, taking the proportion of internet sales to

a record-high 22.3% of all sales, up from 19.9% in February.

     - Motor fuel sales reversed by a record-high 18.9%, with idled drivers

unable to fully take advantage of a 2.2% annual decline in fuel costs during the

month.

     - The deflator for non-food stores declined by an annual rate of 0.6%, the

biggest fall since last April, suggesting some retailers resorted to discounting

to move stock.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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