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PRIVACY
Retail & Consumer

Retail sales plunge as national lockdown shuts thousands of stores

The 8.2% fall in sales in January was far worse than expected and raises pressure on the Government to allow for re-opening of stores

(Image: Newcastle Chronicle)

º£½ÇÊÓÆµ retail sales slumped in January as the national lockdown saw huge numbers of shops shutting their doors, new figures show.

Office for National Statistics (ONS) said retail sales volumes fell 8.2% last month as the national lockdown forced non-essential retailers to close.

The drop in sales was significantly worse than analyst expectations, with a consensus of economists predicting a 2.5% decline for the month.

Sales had increased by 0.3% in December as Christmas demand and the relaxation of previous pandemic restrictions briefly buoyed retailers.

The January slump was less severe than in the first º£½ÇÊÓÆµ lockdown but retail sales volumes remain 5.5% below pre-pandemic levels from February last year.

Sales were once again buoyed by a surge in online trading, with digital spending hitting a record proportion of 35.2% of all sales.

All sectors saw a decline in sales except for non-store retailers and food retailers, which reported 3.7% and 1.4% jumps respectively.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “Department and clothing store sales were particularly affected this month.