Coronavirus Impact Report (Updated)

This report contains:

Summary of UK Performance
UK update on COVID-19
The new normal that FMCG retailers and manufacturers expect after COVID-19
Appendix: Focus on
- Spain
- Greece
- New Zealand

Summary of UK Performance

End of the 13th week of the UK lockdown and the easing of restrictions in England continue. Risk level lowered to 3 with further easing of restrictions gathering pace to help boost the UK economy
Government to announce on 23rd June if the hospitality sector can reopen on the 4th July, and that the 2m distancing rule in England will be relaxed, with some conditions.
UK retail sales partly recovered in May. The amount of goods sold last month increased by 12%, in comparison with record falls seen in April. Sales were boosted by a 42% rise at household goods stores, with DIY shops and garden centres reopening.
FTSE 100 recovered after last week’s drop driven by fears of a 'second wave’ but is around 18% below its January record high
In the latest week, sales reached £2.38b; £210m higher than the same time last year but down 2.3% on last week as sales of BWS and Ice Cream, whilst up, did not hit the same level as previous weeks, with cooler weather playing its part as 'categories impacted by warmer/sunnier periods are seeing purchases down’
Increase in Supermarkets performance in the latest week, however the Convenience channel continues to maintain a greater role
The additional £210m of Total Store sales is +9.6% vs year ago and is driven by an increased Grocery spend of £191m and £19m in Non Grocery
Since the beginning of 2020 and predominantly since the start of COVID-19, UK Retailer sales are £3.612b higher than last year, driven by Ambient (+£1.2b) and BWS +(£884m) departments

Timeline of Events

End of the 13th week of the UK lockdown and the easing of restrictions in England continue. Risk level lowered to 3 with further easing of restrictions gathering pace to help boost the UK economy

FTSE 100 recovered after last week’s drop driven by fears of a 'second wave’ but is around 18% below its January record high
UK retail sales partly recovered in May, despite the continuation of COVID-19 lockdown measures. The amount of goods sold last month increased by 12%, in comparison with record falls seen in April. Sales were boosted by a 42% rise at household goods stores, with DIY shops and garden centres reopening.
Potential longer term impact to the economy as Lower-income households are twice as likely as richer ones to have increased their debts during the crisis according to Resolution Foundation, a think tank.

Total Market Value Sales

In the latest week, sales reached £2.38b; £210m higher than the same time last year but down 2.3% on last week as sales of BWS and Ice Cream, whilst up, did not hit the same level as previous weeks, with cooler weather playing its part as 'categories impacted by warmer/sunnier periods are seeing purchases down’.