Retail outlook darkens in November - CBI Distributive Trades Survey

28 Nov 2022 12:38 PM

Retailers saw their sales volumes fall at a firm pace in the year to November, according to the CBI’s latest quarterly Distributive Trades Survey. Firms anticipate little festive cheer in December, with a similar rate of decline expected next month.

Retailers remain pessimistic about their business prospects for the next three months, which is reflected in declining employment numbers and deteriorating investment intentions.

The key survey findings included:

Martin Sartorius, Principal Economist at the CBI, said:

“It’s not surprising that retailers are feeling the chill as the UK continues to be buffeted by economic headwinds. Sales volumes fell at a firm pace in the year to November, and retailers remain notably downbeat about their future business prospects. This pessimism is reflected in investment intentions worsening to the greatest extent since May 2020.

“Retailers and wholesalers contribute £352bn to the UK economy and support a fifth of the nation’s jobs – yet these survey results underline what a tough time it is for the sector. The Chancellor’s decision to back CBI calls for a freeze in businesses rates next April will provide some welcome relief, but retailers are also looking for longer-term measures from Government that can restore momentum to the UK economy. Businesses stand ready to work with Government to implement a serious plan for growth that can lift us all out of the current crisis.”

In addition, data showed:

This survey included 156 companies, including 65 retailers.