Savills plc

10/23/2020 | Press release | Distributed by Public on 10/23/2020 03:22

Savills reports Q3 retail winners as jewellery, homeware and fast food sales rise

While many categories unsurprisingly struggled over the quarter due to the impact of the pandemic, Savills reports that jewellery sales saw notable growth of 3.9% over Q3 with the sub sector capitalising on the current restrictions by adopting an appointment-only / one-to-one customer approach. According to Savills, this greater focus on customer service, with higher conversion rates and increased transaction values, is likely to have resulted in this uplift.

The research also shows that fast food and takeaway outlets saw an increase of 5.6% over the same period, driven by the Eat Out To Help Out initiative in August and the continued trend towards takeaway orders as people limit their social activities. However, despite having a strong month in August, restaurants did not show the same sustained growth and in fact saw an overall 6.4% decline over the quarter.

Homeware sales also saw growth of 1.7% over the period, driven by the huge rise in home cooking brought about by the pandemic, along with the significant increase in people undertaking home improvements.
Conversely, clothing categories saw the biggest decline in sales over the quarter. Womenswear and menswear both saw drops of over 30% (36.4% and 31.6% respectively), with this area of the market being significantly impacted by the rise in online retail, and further challenged by the closure of many fitting rooms. In addition, stationery also took a big hit over Q3, seeing a drop of 31.5% as the uncertainty of pupils returning to school impacted sales.

Stephen Toal, director of retail property management research at Savills, comments: 'It's clear to see how the lifestyle changes caused by Covid-19 are impacting retail sales around the UK, with the pandemic continuing to shape our shopping habits. As we enter the so-called Golden Quarter, retailers will need to find a way to maintain sales and footfall while navigating the new restrictions being imposed in many urban areas.

The likes of Black Friday will be watched with great interest, and, with Christmas likely to look very different this year, retailers and the schemes in which they are located will need to work closely together to try and see out what has been an exceptionally challenging year for the sector.'