UK Retail Performance Dents GBP Recovery

Figures compiled by National Statistics have shown UK retail sales fell by a record -5.1% over March, missing the -4% consensus and sending GBP immediately lower.

The clothing and footwear sector remains particularly vulnerable as sales at traditional brick and mortar stores fell 34.8%. Major high-street brands Oasis, Cath Kidson and Debenhams have already fallen into administration whilst Arcadia, who own Top Shop, Burton and Dorothy Perkins amongst others, are also considering further permanent store closures.

Consumer confidence remains subdued at -34 for April following its biggest fall in more than 45 years over March. The index is only five points above the historic low of -39 (July 2008) as Britons await the end of lockdown measures put in place to slow the spread of Covid-19.

In contrast, online retail has reached record highs and accounted for 22.3% of total sales. Amazon shares are up 29% this year despite the 18% fall on the Dow Jones Industrial Average. The American corporation stunned the book industry with a £250,000 charitable donation earlier this week to help support UK book shops effected by Covid-19.

Elsewhere, there were warnings the Scottish economy could shrink by as much as a third following its worst ever retails sales readings yesterday. Sales in the country plunged by 13% over March and is the biggest drop since records began back in 1999.