Business News Round Up (16/04/2020)
UK retail sales worst on record as lockdown takes its toll
UK retail sales fell at their fastest rate on record in March as all non-essential shops were closed due to the coronavirus pandemic. Total retail sales declined 4.3%, the sharpest decline since records began in 1995, according to the British Retail Consortium (BRC)-KPMG retail sales monitor. The monthly average reflected a 12 per cent growth in sales in the first three weeks of March, followed by a 27 per cent fall after the government-imposed lockdown on March 23. On a like-for-like basis, retail sales in March decreased by 3.5% compared with March 2019. Over the three months to March, in-store sales of non-food items declined by 13%, which the report said was the result of the closure of “non-essential” stores. During the same three-month period, food sales increased more strongly than the longer-term average.
https://www.ft.com/content/5ba9abb4-7837-4e6b-a4bf-f267ee3070f1
Think tank identifies cities most vulnerable to Covid-19 economic impact
A new think tank has identified the towns and cities that are most vulnerable to the economic impact of coronavirus. The study assessed the economic impact of the coronavirus crisis on 62 large cities and towns, finding that those most dependent on the aviation industry faced the greatest threat. Crawley, with a large share of employees working in the aviation and aircraft manufacturing industries, was likely to face the biggest impact. Other areas identified include Luton and Derby, while in Scotland, Aberdeen, where the economy is dominated by the oil and gas sectors, is likely to be worst affected, said the report.
https://www.insider.co.uk/news/think-tank-identifies-cities-most-21874311
Cashflow and closures cause havoc for Scottish construction industry
A major survey by the newly formed Construction Industry Coronavirus (CICV) Forum has revealed the Scottish construction industry is being hard hit with cashflow having completely dried up for 80% of businesses. The survey analysed responses from 377 construction companies across Scotland, ranging from electricians, builders and plumbers to surveyors, architects, roofers and joiners. As a consequence of the current pandemic, 262 of the companies surveyed said cashflow has stopped, while more than two thirds say they’ve furloughed staff, 37 per cent are shut completely, while more than a quarter currently have staff and sub-contractors in self-isolation.
Venture capital trusts raise £38.2m to distribute throughout North
Three Northern Venture Capital Trusts have raised £38.2 million in new capital through share offers launched in January 2020. The funds will be available for distribution across the North of England, including the North West. The three VCTs form part of the assets under management (AUM) of Mercia Asset Management, the proactive regionally-focused specialist asset manager, following the acquisition of NVM VCT fund manager contracts in December 2019.