UK retailers expect Christmas sales to be a disaster as government has ordered non-essential stores across England to shut for four weeks. As per Business of Fashion, UK retailers were already struggling to recover from the first lockdown last spring and laden with stock for Black Friday promotions and the holiday period. The new restrictions could prove fatal for some businesses, particularly if they’re extended beyond the initial four weeks.

They will have a huge impact, as 80 per cent profits for non-food retailers are typically generated in November and December, said Mark Price, Former Deputy Chairman, John Lewis Partnership Plc. As the new measures will continue to funnel business to digitally focused companies, though, online grocer Ocado Group Plc lifted its profit target, citing strong sales trends during the pandemic.

The New West End Company, a lobbying organization for more than 600 London retail and leisure businesses, warned that £2 billion of sales could be lost as a result of the latest lockdown. That would be a severe blow for the city’s West End entertainment district, where current sales were already down about two-thirds from pre-pandemic levels.