High street woes go on as sales decrease

Decline continues for fifth year in a row

CONSUMER: High streets have been plunged into further chaos with a fifth consecutive year of falling sales, as it emerged a pre-Christmas shopping boom failed to materialise.

BDO’s High Street Sales Tracker shows that average annual like-for-like in-store sales for 2019 in the UK were down by 0.6 per cent.

HIGH STREETS have been plunged into further chaos with a fifth consecutive year of falling sales, as it emerged a pre-Christmas shopping boom failed to materialise.

The accountancy and business advisory firm BDO’s High Street Sales Tracker shows that average annual like-for-like in-store sales for 2019 were down 0.6 per cent.

While “not a disastrous result on its own”, the five-year run of negative figures will be of serious concern to retailers, the business advisory firm said.

It comes as the Office for National Statistics found shoppers cut down both on how much they bought and the amount they spent at the end of last year.

Instead of channelling growing proportions of their income into traditional retail, consumers are increasingly spending on services and experiences.

Record levels of employment and rising disposable income were not enough to raise consumer confidence amid ongoing political and economic uncertainty around Brexit.

According to BDO figures, the lifestyle category tumbled in

2019, recording 11 consecutive months of negative in-store sales results, with only December providing respite due to a buoyant Black Friday kicking off a period of sustained discounting.

December’s positive in-store sales result was the first for lifestyle since January 2018.

But over the three-month period to December, the ONS found the amount spent and quantity bought fell 0.9 per cent and one per cent respectively when compared with the previous threemonth period.

Fashion remained volatile throughout the year, with six months of negative in-store likefor-like sales results. The sector capped the year off with a dive of 2.4 per cent year-on-year from a poor base of negative two per cent in the crucial December trading period.

However homewares had a strong 2019, finishing the year with four months of consecutive in-store sales growth.

Sophie Michael, head of retail and wholesale at BDO, said: “2019 was another tough year for the high street.

“There have been huge job losses across the country, with a number of high-profile brands disappearing from our high streets forever.”

Rhian Murphy, ONS head of retail sales, said almost all sectors showed a decline.

She said: “The longer-term picture is still one of growth, although it has slowed considerably in recent months.

“December was the fifth consecutive month with no growth as food stores suffered particularly poor sales, showing the steepest fall for three years.”