WiredGov Newswire (news from other organisations)
Retail sales stabilise but non-essential retailers continue to struggle - CBI
Retail sales stabilise but non-essential retailers continue to struggle – CBI.
Retail sales were broadly flat in the year to July after three months of sharp declines, according to the CBI’s monthly Distributive Trades Survey. The improvement was primarily driven by stronger grocery sales, although conditions appear to have eased more widely following the re-opening of non-essential retailers on July 4th.
Alongside higher grocery volumes, sales of hardware & DIY products and other normal goods (cards, flowers, stationary) returned to growth in the year to July. Although most other retailers (e.g. clothing, footwear and department stores) continued to report significant declines, in some cases falls were less severe than in recent months. Overall, sales are expected to dip slightly in the year to August.
Sales were seen as average for the time of year, marking the highest survey balance since November 2019. Sales are expected to be remain close to seasonal norms next month.
The survey (conducted between 26 June 2020 and 15 July 2020) also reveals that orders placed on suppliers fell for the fourth consecutive month, though at a slower pace than in June. Retailers anticipate they will fall at a similar pace next month.
Rain Newton-Smith, CBI Chief Economist, said:
“It’s great to see retail sales stabilise this month, but this doesn’t tell the whole story. This crisis has created winners and losers within the retail sector and for some businesses the picture remains bleak.
“The re-opening of non-essential retail was a vital step towards recovery but isn’t a cure-all. The Government has provided critical support for firms and jobs throughout the crisis. But ongoing financial pressures are a major challenge for some retailers, and additional direct support to shore up cash flow, such as extension of business rates relief, should be considered.”
In other survey results, wholesalers reported the fourth consecutive month of falling sales and orders, though at a slower pace than last month. Both sales and orders are expected to fall at a sharper pace in the year to August.
Motor traders reported growth in sales in the year to July, the first increase since February, but expect a return to negative territory next month.
- Retail sales were broadly flat in the year to July (balance of +4%, from -37%) and are expected to dip slightly next month (-5%).
- Orders placed on suppliers in the year to July also fell (balance of -14%, from -47%) and are expected to fall at a similar pace next month (-14%).
- Sales were seen as normal for the time of year (balance of 0%, from -34%) and are expected to remain so in August (-2%).
- Internet sales growth remained above the long run average (balance of +48%, from +50%) and is expected to pick up further in the year to August (+61%).
- Wholesalers reported a slower fall in sales volumes (balance of -22%, from -66%) and expect a sharper pace of decline in the year to August (-47%).
- Wholesalers also reported a slower fall in orders (balance of -32%, from -57%) but expect a sharper fall next month (-45%).
- Motor traders reported a pick-up in sales in the year to July (balance of +18%, from -80%). Sales volumes are expected to fall in the year to August (-10%).
28 July 2020
Notes to Editors:
The Distributive Trades Survey (DTS) includes measures of sales activity across the distributive trades. It was first introduced in 1983 and the retail results from the UK component of the EC survey of retail trades.
The DTS survey was conducted between 26 June 2020 and 15 July 2020. A total of 133 businesses responded, 62 retailers, 55 wholesalers and 16 motor traders.
A balance is the weighted difference between the percentage of retailers reporting an increase and those reporting a decrease.
About the CBI: Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.
Media Contact: The CBI Press Office is available 24 hours a day on 0207 395 8239, or email: firstname.lastname@example.org. Follow the CBI (@CBItweets) and CBI Economics (@CBI_Economics).
Latest News from
WiredGov Newswire (news from other organisations)
CBI responds to the latest U.S tariff decisions on British goods13/08/2020 16:33:00
CBI has responded to the latest U.S tariff decisions on British goods.
Keeping people in work is the best way to help economy recover13/08/2020 14:33:00
Wales TUC General Secretary Shavanah Taj yesterday commented on the GDP figures.
Trade Union Education in Lancashire13/08/2020 14:25:00
Following the announcement by Blackburn College that they planned to make redundancies and close the trade union education centre at the college, we have been working hard with UCU to protect jobs and reps training in Lancashire.
2 in 5 schools around the world lacked basic handwashing facilities prior to Coronavirus pandemic — UNICEF, WHO13/08/2020 13:40:00
As schools worldwide struggle with reopening, the latest data from the WHO/UNICEF Joint Monitoring Programme (JMP) reveals that 43 per cent of schools around the world lacked access to basic handwashing with soap and water in 2019 – a key condition for schools to be able to operate safely in the midst of the Coronavirus pandemic.
CIPD - Reduced hiring rather than increased firing is cause of jobs slowdown to date13/08/2020 12:40:00
The CIPD responds to the latest labour market figures from the Office for National Statistics
LGA responds to NHS Confederation report on mental health services13/08/2020 11:40:00
Cllr Ian Hudspeth, Chairman of the Local Government Association’s Community Wellbeing Board, responded to an NHS Confederation report on mental health services facing rising demand due to coronavirus
NHS Confederation - Mental health services face ‘rising tide’ in demand due to coronavirus13/08/2020 10:40:00
People requiring support and treatment for their mental health are at risk of not getting the care they need and their conditions deteriorating due to increased demand brought about by the coronavirus pandemic, and constraints in what services can deliver.
LGA responds to Salvation Army report on homelessness13/08/2020 09:40:00
Cllr David Renard, Local Government Association housing spokesperson, responded to a report by the Salvation Army calling for homelessness services to be properly funded in this Autumn’s Comprehensive Spending Review