Retail sales growth stalls ahead of expected drop next month - CBI Quarterly Distributive Trades Survey

23 Feb 2023 12:22 PM

In the year to February, retail sales volumes were broadly unchanged following last month’s contraction, according to the latest CBI Distributive Trades Survey. Next month, sales volumes are expected to fall again.

Retailers continue to be gloomy about their business situation over the next three months but are less pessimistic than last quarter. Price growth remains near multi-decade highs, and retailers expect headcount to decline again next month.

The key survey findings included:

Martin Sartorius, CBI Principal Economist, said:

“Whilst retail sales volumes were largely unchanged in the year to February and slightly above seasonal norms, firms remain pessimistic about their business outlook and are bracing themselves for yet another fall in sales next month.

“At the upcoming Spring Budget, the Government must take action to tackle the roadblocks in the way of the UK’s economic growth. Retailers are now looking for action in areas like skills and investment. Transforming the Apprenticeship Levy into a “Skills Challenge Fund” and incentivising businesses investment through introducing a successor to the super deduction will be crucial for improving our economic prospects.”

 In addition, data showed:

This survey included 136 companies, including 59 retailers.