Retail sales plummet in November, CBI finds
Retailers remained “notably pessimistic” about the business situation over the next three months
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Retailers saw their sales volumes plummet in the year to November, according to the CBI’s latest quarterly distributive trades survey, and a similar rate of decline is expected in December.
Retail sales declined -19% in the year to November down from +18% in October. The CBI said a similar fall of -21% is expected next month.
Sales volumes were seen as average for the time of year at +3% from +20% in October and are expected to remain broadly in line with seasonal norms in December at -1%.
Online retail sales declined to -5% from -23% in October. Internet sales have now been flat or falling for 13 months, and an accelerated contraction of -26% is expected next month.
Retailers remained “notably pessimistic” about the business situation over the next three months.
It found confidence fell at a rate of -22% which is a similar number to August. Employment growth slumped to -17% from +13% in August which was the first decline in headcount since August 2021. A further fall of -12% is anticipated next month.
Retailers are also expected to reduce investment in the next 12 months compared to the previous 12, -38% from -31% in August, which is the greatest decline since May 2020.
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 business 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.”
