Retail sales volume decreased by 1.9 per cent in 2020 from the previous year, according to the Office for National Statistics (ONS) estimates, the largest year-on-year fall since records began in 1997.
Clothing stores (-25.1%), fuel stores (-22.2%) and department stores (-5.2%) all recorded record annual declines in sales volumes in 2020.
“Because of the impact of the coronavirus pandemic, 2020 has seen the retail sector suffer its largest annual fall since records began of 1.9 per cent, with continued restrictions on non-essential retail impacting the sector as a whole,” the ONS said in a statement.
Non-store retailing, predominately online, saw a record annual increase of 32 per cent for 2020, though. Total online retailing values increased by 46.1 per cent in 2020 from the previous year, the highest annual growth reported since 2008.
Food stores witnessed record annual increase of 79.3 per cent in values of internet sales in 2020.
In December, food stores however reported a monthly fall of 3.4 per cent, which the agency attributed to a fall back from the 2.8 per cent growth in November, when supermarkets benefitted from the closure of the hospitality industries and other non-essential retail sectors in some parts of the country.
Retail sales as a whole bounced back weakly in December after shops in England emerged from a four-week November lockdown.
Sales volumes rose 0.3 per cent in December, much less than economist expectations in a Reuters poll for a 1.2 per cent increase. England is now in its third national lockdown and officials have not confirmed when it will end.
As Britain recorded another 1,290 deaths on Thursday from COVID-19, down from a record 1,820 the day before, the narrative for a quicker economic recovery thanks to the vaccine rollout is weakening.
"The weaker than expected UK retail sales released this morning combined with the suggestion that schools may not open until April, with non-essential shops opening even later in England bodes poorly for the recovery story," said Jane Foley, head of FX Strategy at Rabobank.
Commenting on the figures, Helen Dickinson, chief executive of the British Retail Consortium, said the “industry found itself in the firing line for last minute coronavirus restrictions,” calling on the government to take urgent measures to support struggling retailers.
“With no end in sight for retailers closed in lockdown, many will struggle to survive under a mounting rent burden, and a return to full business rates in April,” she said.
“The government should urgently announce an extension to the moratorium on aggressive debt enforcement and offer targeted business rates relief to the worst-affected businesses. Decisive action is needed to save jobs, shops and local communities, with town and city centres looking to be particularly hard hit unless the government acts now.”
