UK: Retailers slash orders with suppliers as sales decline at quickest rate since April 2022
"Retail sector shows continuing signs of weakness, says CBI", 29 July 2023
Retailers are ready for worse times ahead as many have slashed orders with suppliers as UK retail sales declined in July at the quickest rate since April 2022.
The weighted balance of retail sales, which compares volumes with a year ago, decreased to -25 in July from -9 in June, according to the CBI’s most recent monthly survey. The third month in a row had seen contractions...
Internet sales volumes also experienced a significant reduction in the year to July, and it is anticipated that they will do so again next month at a roughly similar rate.
The overall number for expectations for August decreased to -32 from zero, which is the lowest value since March 2021. Since Britain had reentered a Covid-19 lockout in January 2021, the survey’s gauge of orders placed with suppliers dropped to its lowest level.
Wholesale volumes declined in the distribution industry overall in July at a slightly slower rate than in the previous month. Next month, wholesalers anticipate a roughly similar rate of reduction.
“Firms remain cautious about the retail sector’s near-term outlook as they pare back on orders and brace themselves for another sales contraction in the year to August,” said CBI economist Martin Sartorius.