Retail sales plummet in lockdown

Photo: File/SunLive.

Retail sales values fell a historic 15 per cent in the June 2020 quarter during the COVID-19 lockdown, the biggest drop on record in figures going back 25 years, Stats NZ says.

Spending on eating out, accommodation away from home, vehicles, and fuel all fell sharply in the June 2020 quarter compared with the June 2019 quarter.

This was only partly offset by strong supermarket and grocery sales.

'This unprecedented fall in the June quarter was not unexpected, with COVID-19 restrictions significantly limiting retail activity,” says retail statistics manager Kathy Hicks.

'Non-essential businesses closed temporarily for about half of the quarter during alert levels 4 and 3.”

Most industries saw unprecedented sales falls in the June quarter. Sales for food and beverage services fell 40 per cent or $1.2 billion in the quarter, the largest drop of any industry.

'For a team of 5 million, that is equal to each person spending about $18 a week less on eating out over the June quarter,” Kathy says.

Fuel retailing had the second largest fall, down 35 per cent or $770 million.

These falls were followed by:

  • motor vehicles and parts retailing, down 22 percent ($729 million)
  • accommodation services, down 44 percent ($418 million)
  • hardware, building, and garden supplies down 16 percent ($350 million)

These falls were partly offset by a substantial increase in supermarket and grocery stores, up 12 per cent from the June 2019 quarter.

This follows a record rise of 13 percent in the March 2020 quarter.

'Supermarkets and grocery stores were essential services that stayed open during the lockdown, and the strong increase in sales values reflects that,” Kathy says.

Sales values for the non-store and commission-based industry rose 20 per cent in the June 2020 quarter.

Online businesses were in demand during the lockdown period, providing a wide range of products and the advantage of home delivery.

Electrical and electronic goods retailing was up 5.4 per cent.

'These businesses were able to operate online under lockdown as an essential service," Kathy says.

'They provided food deliveries and electronic supplies, such as heaters or computer monitors for home office set-ups during lockdown.”

1 comment

Bank Charges?

Posted on 25-08-2020 15:05 | By Lvdw

Why are banks still charging for paywave when it is the BEST way to stop community spread Covid19? Vendors are strugging as it is.


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