According to a recent report published by S&P Global Market Intelligence, U.K. retail sales volume plunged cramatically in March when coronavirus-related shutdowns took effect to stem the spread of the virus.
Retail sales slid 5.1% in the month following a 0.3% decline in February, as many non-essential stores shut down following a government decree. The consensus estimate of economists polled by Econoday was for sales to decline 3.5% in March. Sales at clothing stores slumped 34.8%, while food stores and non-store retailing were the only sectors to experience growth in the month, with sales at food stores climbing 10.4% and non-store retailing growing 5.9%. “
“The sharp monthly rise in food retail likely reflects the stockpiling ahead of the lock-downs,” wrote Kallum Pickering, senior economist at Berenberg, in a note. “Expect a sharp correction in April.” Meanwhile online sales jumped 8.3% and comprised a record high of 22.3% of all retailing in March. In true value terms, retail sales fell 5.7% over the prior month.
On 23th April the Business Secretary announced that high street shops and other companies under strain will be protected from aggressive rent collection and asked to pay what they can during the coronavirus pandemic. The majority of landlords and tenants are working well together to reach agreements on debt obligations, but some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics.
To stop these unfair practices, the government will temporarily ban the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus. This will help ensure these companies do not fall into deeper financial strain. The measures will be included in the Corporate Insolvency and Governance Bill, which the Business Secretary Alok Sharma set out earlier this month.
