The Office of National Statistics (ONS) retail figures for August show that the retail bounce-back has stumbled, says home delivery expert, ParcelHero.
The value of all retail sales grew by just 0.7% in August – not the significant recovery stores had been hoping for and a marked slowdown from July’s 4.4% jump.
ParcelHero’s Head of Consumer Research, David Jinks MILT, claims it was only a boom in DIY that saved retail’s recovery from stalling altogether.
He said: “August saw a burst of DIY fever, created because people stuck at home for months realised all the jobs that needed doing as soon as lockdown eased. Hardware, paint and glass stores’ sales were up 12.9% compared to the pre-Covid levels of February.”
But once the nation has finished all those repairs and improvements while furloughed or working from home, where will any future growth come from, asks ParcelHero.
“The magic of the High Street has definitely faded. The ONS figures reveal fashion sales have tumbled 30% this year with clothing and footwear businesses reporting a disastrous -85.7% decrease in footfall,” Mr Jinks added.
In contrast, online sales are up 51.6% year-on-year as shoppers continue to enjoy the benefits of shopping from home.
Online clothing and footwear sales are up 30% on August 2019, so it’s clear many shoppers have abandoned the High Street and jumped online for fashion items.
While e-commerce sales slipped a little compared to last month, down 2.5% compared to July, online still accounts for over 28% of the entire retail spend, compared to the 20% share it took in February before the pandemic began.
ParcelHero said : “High Street retailers need to create unique and enticing reasons why shoppers will want to visit their stores again. Our town centres need their own DIY fixing-up crusade to give shoppers a reason to return.”
ParcelHero reckons owners of physical stores and online stores need to work symbiotically, with both services complementing each other, saying “That is the only way forward for stores as retail claws its way back from the clutches of the coronavirus.”
For more information on how retailers can compare carriers’ prices and services, visit the ParcelHero guide here.
