UK retail sales continue to disappoint in Apr: CBI survey

Retail sales were seen as poor for the time of year in April, to a similar degree to last month (minus 24 per cent from minus 23 per cent in March), and are expected to remain poor in May, though with some improvement (minus 17 per cent).

Retail sales volumes fell rapidly in the year to April (minus 35 per cent from 9 per cent in March; long run average is 18 per cent). This is the first fall in retail sales volumes in 13 months. Next month, retailers expect sales volumes to continue declining but at a more modest pace (minus 8 per cent), CBI said in a press note.

Orders placed upon suppliers saw a slight fall in the year to April (minus 7 per cent from 3 per cent in March). This is the first fall in order volumes in 13 months. Orders placed on suppliers are expected to continue falling in the year to May (minus 9 per cent).

Internet sales volumes continued to fall in the year to April, but at a slower pace than in March (minus 36 per cent from minus 46 per cent). This marks the third consecutive monthly drop. Internet sales are expected to decline at a modest pace next month (minus 6 per cent).

Retailers saw stock levels in relation to expected sales as ‘too low’ in April (minus 9 per cent from 15 per cent in March), though an improvement in relative stocks is expected in May (5 per cent).

Wholesale sales were seen as good for the time of year in April, and to greater extent than in March (39 per cent from 29 per cent). Looking ahead, wholesalers expect another good month of seasonal sales in May (32 per cent).

The CBI survey was based on the responses of 108 companies, including 51 retailers.

ALCHEMPro News Desk (DS)