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October 27, 2021

CBI survey says UK retail sales in October were ‘broadly average’

Retail sales are expected to be above seasonal norms next month.

Retail sales in the UK were ‘broadly average’ in October, according to the Confederation of British Industry’s (CBI) latest monthly Distributive Trades Survey.

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A total of 123 companies were included in the survey, 51 of which were retailers.

Retail sales grew at a faster pace in the year to October by 30% compared to 11% last month, and the trend is expected to continue and grow to 35% next month.

The survey also found that retail orders rose from 20% in September to 48% in October. It is expected to ease at 41% in November.

Meanwhile, wholesalers’ sales slightly eased from 30% in the year to September to 27% this month.

CBI Principal Economist Ben Jones said: “The UK’s economic recovery has been pretty bumpy lately and the same seems true of the retail sector. Sales performance has jumped around in recent months, while stock shortages continue to bite.

“Disruption to supply chains, combined with staff shortages and uncertain public health conditions mean retailers are finding it difficult to plan for the winter ahead.

“It’s therefore crucial the government remains agile to support the sector. The chancellor has the opportunity at his upcoming budget to signal the government’s intent to reform the outdated business rates system, starting with more frequent revaluations and removing any disincentives for investment in energy efficiency and decarbonisation.”

Despite the rise in retail sales, stock adequacy dropped to a record low since 1985.

Recently, data from the country’s Office for National Statistics (ONS) revealed that the UK declined by 0.2% last month after falling by 0.6% in August.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.