11th Feb 2021 05:35
(Alliance News) - UK retailers missed out on GBP22 billion worth of sales as a result of Covid-19 lockdowns, an industry body said on Thursday, calling for more government support for the hard-hit sector.
According to the British Retail Consortium, non-food and store-based retailers have so far lost an estimated GBP22 billion worth of sales during the three Covid-19 lockdowns.
The GBP22 billion figure, the BRC said, refers to sales lost in stores. It therefore does not account for any extra demand online retailers may have received as a result of lockdowns.
E-commerce and food retailers, both online and off, have fared better than high street retailers.
England entered its third nationwide lockdown in January and non-essential retail stores remain closed. This followed the initial Spring lockdown and the month-long curbs imposed in November.
Bricks and mortar retailers were also hurt by stringent curbs also being imposed during the Christmas period. These turned normally busy shopping days like Boxing Day into non-events.
In December, various regions, including London, were slapped with tier 4 restrictions. These curbs were the most stringent under the UK's tiered system, falling just short of a full lockdown. Subsequently, a full third lockdown was imposed in January in England.
The tough economic conditions in 2020 have seen UK retailers such as Peacocks and Jaeger-owner Edinburgh Woollen Mill, Debenhams, and, most notably, Topshop-owner Arcadia Group slip into administration. Various Arcadia brands were snapped up by AIM-listed retailers boohoo Group PLC and ASOS PLC, though bricks-and-mortar stores will still close.
"Tighter restrictions in the crucial run-up to Christmas hampered retailers' ability to generate much-needed turnover, which would have helped power their recovery in 2021. Retailers contributed GBP17 billion in business taxes in 2019, collecting a further GBP46 billion in VAT. A strong retail sector is essential to ensuring these future revenue streams for government and local councils, vital for supporting local communities," the BRC said.
The BRC called on UK Chancellor Rishi Sunak to give the retail sector a helping hand by extending business rates relief and prolong a moratorium on debt enforcement. The latter measure will support retailers with mounting rent costs.
"The decision to apply EU state aid limits to lockdown grants should be reversed and all bureaucratic restrictions stopping businesses receiving these vital support funds promised by the chancellor should be removed," the BRC added.
The new year has so far offered the sector little respite. According to the BRC-KPMG monitor, total retail sales in the UK slumped 1.3% annually in January, declining to their lowest level since May.
By Eric Cunha; [email protected]
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