By UK retail sales plunge as government borrows £8.8bn
All sectors of retailing except for food and online outlets were affected by the imposition of tough new restrictions across the UK, and although the Office for National Statistics said the decline was not as severe as the 22% drop in the first lockdown last April, it was substantially worse than the 3% drop the City had expected.
Chancellor Rishi Sunak is due to announce details of his spring budget next week, where he is expected to extend the furlough scheme until at least May.
That follows the Prime Minister’s announcement focusing on the way out of the coronavirus lockdown.
Simon Beardsley, chief executive of Lincolnshire Chamber of Commerce, said: “Even with the new roadmap, the future of thousands of firms and millions of jobs still hangs by a thread.
“Many hard-hit businesses simply don’t have the cash reserves needed to hold out several more months before they are allowed to reopen.
“We will continue to lobby to see that all the key support schemes for business should be extended – through the summer and wherever possible throughout 2021 – to ensure that as many viable organisations as possible can make it to the end of this pandemic and on the road to recovery,” he added.
Primark says it has no plans to sell its clothes online despite warning that lockdown store closures could cost it more than £1bn in lost sales.
Retail and hospitality businesses missed out on £45bn during the first lockdown and its immediate aftermath, a study has found – and that was just the first lockdown!
Bars, pubs and restaurants lost 90 per cent of revenues over the period, amounting to £25bn, while non-food high street shops saw £20bn of sales evaporate, according to researchers at the Universities of Cambridge.
