Retailers expect annual sales to fall again in February, at a broadly similar rate of 26 per cent.
Online retail sales volumes declined at a quicker pace of 22 per cent in the year to January from a 8-per cent drop in the year to December, and are expected to fall by 46 per cent next month.
“The retail sector saw a further deepening of the recent sales downturn in January. Retailers cited weak demand and downbeat sentiment as continuing strains on business conditions,” CBI principal economist Martin Sartorius said in a CBI release.
“With recent growth figures showing the urgent need to inject momentum into the economy, the government should look at policy levers that would help shore up confidence across key sectors, including retail. As firms brace for an April costs hike due Budget measures coming into force, it is crucial to press ahead with reforms to the unfair business rates system and deliver much-needed flexibility to the Apprenticeship Levy,” he added.
Orders placed upon suppliers declined at an accelerated rate of 43 per cent in the year to January from a 26-per cent drop in the year to December. Retailers anticipate cutting back on orders at a more moderate pace of 25 per cent in February.
Retail stock volumes remained elevated relative to expected demand in January (plus 26 per cent from plus 13 per cent). Stock positions are set to soften next month (plus 18 per cent).
Fibre2Fashion News Desk (DS)