Business | Leisure & Retail

Retail sales fell back in November as shops closed for lockdown 2, says ONS

A number of retailers had to close shops for the Covid-19 lockdown in December 2020
PA Archive/PA Images
Joanna Hodgson
18 December 2020

UK retail sales dropped 3.8% in November when much of the high street was closed for the second Covid-19 lockdown.

 ‘Non-essential’ retailers, such as clothing and jewellery brands, had to close shops last month and were only allowed to reopen in early December.

Retail sales volumes decreased by 3.8% when compared with October, according to the Office for National Statistics. Despite the monthly fall, overall sales remain above their pre-pandemic levels.

The year-on-year growth rate in the volume of retail sales increased by 2.4%, with feedback from firms suggesting that consumers had brought forward Christmas spending.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “After a run of strong growth, retail sales fell back in November as restrictions meant many stores had to close their doors again. Clothing and fuel were particularly hit by the winter lockdown, with their sales falling sharply. Despite the monthly fall, overall sales remain above their pre-pandemic levels.”

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He added that 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, particularly on festive home products and DIY.

Food sales, especially click and collect, were boosted as people were not able to eat out, as pubs and restaurants were also closed for the second lockdown.

In November clothing store sales saw a sharp fall in sale volumes when compared with the previous month, at negative 19%.

But food stores saw 3.1% growth and household goods stores saw growth of 1.6%.

Many consumers went online to shop last month and took advantage of Black Friday discounts, with huge pent-up demand.

The ONS said online retailing accounted for 31.4% of total retailing compared with 28.6% in October 2020, with an overall growth of 74.7% in the value of sales when compared with November 2019.

Lisa Hooker, consumer markets leader at PwC, said: "As we look ahead to the rest of the month, retailers will be hoping that the momentum online in November carries through into physical shops, despite more areas moving into Tier 3,  in the final countdown to Christmas.”

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