“With the nation firmly under lockdown throughout April, drastic retail sales declines were to be expected.”
Retail sales have seen a record decline in April as the coronavirus lockdown continues to take its toll on the sector.
This is the worst decline since January 1995, according to BRC-KPMG retail sales monitor, as a worrying number of retailers file for bankruptcy while their stores remain closed.
Yet despite the challenging climate some retailers have managed to see success during these uncertain times by capitalising on the shift online.
Here’s Charged’s list of retailers who are doing well during the lockdown.
Last week The Works announced that it had seen its online sales more than triple during the coronavirus lockdown despite its stores remaining closed.
The discount retailer said its like-for-like sales in stores and online increased by a colossal 81 per cent in the week to March 22.
Meanwhile, revenue rose by 3.5 per cent year-on-year for the 12 months to April 26.
During the year it also opened 37 new stores, taking its total to 534.
The new store roll out programme is currently suspended, with the exception of a small number of stores where the company is legally committed, and discussions with landlords to reduce rents whilst stores are closed continue.
Farfetch has reaped the benefits of being an online-only retailer amid the huge shift to online shopping during lockdowns worldwide, with quarterly sales sky rocketing 90 per cent and a narrower-than-expected loss.
The luxury retailer’s sales came in at $331m (£267m), better than forecasts of $313m.
The retailer, which also owns Off White and Browns, said its latest set of results “demonstrate the strength of the platform model within the luxury industry”.
It also said it continued to make market share gains in a quarter characterised by physical store closures.
Shares in the cycling and autocentre retailer soared as much as 26 per cent earlier this week, boosted by the government’s announcement that people should consider cycling to work as lockdown measures are eased.
The retailer said results for the financial year were boosted by better than expected sales during the lockdown and it now expects profit before tax to be at the upper end of its guided range of £50 million to £55 million.
Card Factory has seen its online sales rise during the Covid-19 pandemic, and it is now working towards preparing store operations for a reopening post lockdown.
Last week the greeting cards retailer reported that its online sales rocketed by 267.5 per cent since the beginning of the UK lockdown on March 23.
In response to this increased demand, and to support social distancing, Card Factory established a second fulfilment centre in Wakefield.
In preparation for reopening, Card Factory is working on changes to in-store operations to help ensure colleague and customer safety.
Zalando is anticipating double-digit growth in 2020 despite the challenging trading environment due to the outbreak.
The retailer’s stocks jumped nearly 11 per cent last week after it announced the prediction while revealing that it expects to see gross merchandise volumes rise between 10 and 20 per cent this year.
Despite an initial drop in sales in March, demand reportedly recovered in April seeing a 39 per cent growth in new customers, up from 17 per cent growth in Q1.
The retailer stated that its growth will be driven by the accelerated consumer shift from offline to online.
Ocado has seen its retail revenues grow 40.4 per cent in its second quarter as it delivers “significantly more groceries to households than ever before”.
The online grocer has seen “unprecedented demand” for its deliveries during the last three months, seeing revenues nearly quadruple from its first quarter.
While the number of items per basket has reportedly now passed its peak, Ocado says its customer fulfilment centres (CFCs) across the UK are still running at peak efficiencies in order to try and match the sharp rise in demand.
Despite delivering more goods to more households than ever before, the quarter has seen Ocado dogged by unhappy customers unable to get delivery slots or even access its website and it is unclear what impact this will have on Ocado’s favourability with once loyal shoppers after lockdown.
At the end of the last month Ebay smashed analyst estimates in its first quarter proving to be one of the few retailers benefiting from the global lock-down.
The online marketplace said sales in the three months to March 31 dropped two per cent to $2.4 billion (£1.93 billion), but this still came comfortably above analyst estimates of $2.34 billion (£1.88 billion).
Gross merchandise volume, the total value of all goods sold on its platform, hit $21.3 billion (£17.11 billion) during the quarter, again beating estimates of $20.5 billion (£16.47 billion).
Meanwhile it achieved earnings per share of 77 cents, compared to average analyst estimates of 73 cents.
Etsy saw its shares skyrocket 86 per cent after it called for sellers to “start making face masks”.
More than 50,000 Etsy sellers have now reportedly sold more than one face mask, while 10,000 sellers said they have sold more than 100.
This influx of face mask sales follows a difficult March for the online marketplace, which saw its share prices nearly drop to their lowest point in two-years.
“I woke up to discover it was suddenly like Cyber Monday,” Etsy’s chief executive Josh Silverman told the Financial Times.
“But everyone in the world wanted only one product.”
Nintendo Switch & Animal Crossing
Nintendo announced last week that its flagship console had achieved combined sales of 55.77 million units worldwide.
That includes the Nintendo Switch and Nintendo Switch Lite consoles selling 21.03 million units last year.
That reflects a 24 percent increase in sales year-on-year as people turn to gaming while staying amid home the global pandemic.
Nintendo’s new game Animal Crossing: New Horizons is now also the top game in the UK after sales surged 135 per cent week-on-week.