As British retailers struggle with a slump in sales ahead of the crucial Christmas period, a new industry survey paints a gloomy picture for the start of the new year. The Confederation of British Industry (CBI) has reported that retail sales volumes fell at an accelerated rate in the year to December, with the CBI’s gauge of sales compared to a year earlier worsening to -44 in December from -32 in November.
The survey, which involved 161 respondents including 60 retailers and 85 wholesalers, found that retailers do not anticipate any relief in the new year, with sales expectations deteriorating to their weakest level in over four years. Martin Sartorius, principal economist at the CBI, stated: “Retailers reported that annual sales volumes fell rapidly in December, as weak consumer confidence contributed to softer trading conditions in the lead-up to Christmas. Firms do not anticipate any relief in the new year, with sales expectations deteriorating to their weakest in over four years.”
This bleak outlook is mirrored across the wholesale and motor trade sectors, which also expect sales to continue falling in January. Sartorius emphasized the need for government action to alleviate the cost of doing business, stating: “Against a backdrop of weak trading conditions, there is a clear need for government action to lower the cost of doing business. Progressing reforms to the business rates system, lowering crippling energy costs, and finding balanced solutions to the Employment Rights Bill through secondary legislation would help restore confidence and unlock vital investment.”
The gloomy retail performance comes just hours after the Office for National Statistics reported a small fall in retail sales volumes in November, further underscoring the challenging environment facing British retailers as they navigate the post-pandemic economic landscape.
