According to UK CBI Distributive Trades Survey, retail sales volume in year to September contracted for the fifth consecutive month at -16%. But that was already a notably improvement from -49% in August, and beat expectation of -26%. Also retailers are expecting sales volume to drop at an even slow pace at -5% next month.
Rain Newton-Smith, CBI Chief Economist, said: “Five successive months of falling volumes tells its own story about the tough conditions retailers are having to operate in. Add to this the pressures of Sterling depreciation and the need to plan for potential tariffs and supply issues in the event of a no-deal Brexit and you get a gloomy picture for the sector.
“Retailers are also grappling with ongoing challenges such as digital disruption and the cumulative burden of government policies. Reforming an outdated business rates system and a more flexible apprenticeship levy which delivers better value for money could really help to alleviate the pressure on retailers during these difficult times.”
