UK's retail sales decline in March 2022: Survey

The retail sales volumes grew at a slower pace in the year to March (+9 per cent from +14 per cent in February) but are expected to grow at a much faster pace in the year to April (+39 per cent), according to the CBI quarterly Distributive Trades Survey.

Moreover, the survey of 93 companies, including 38 retailers, found the orders placed with suppliers were broadly flat in the year to March (+3 per cent from +11 per cent in February) but are expected to grow at a quick rate in the year to April (+29 per cent). The internet sales volumes in the year to March fell at the sharpest rate since the question was first asked in August 2009 (-46 per cent from -11 per cent in February), although this is in comparison to March 2021 when non-essential retail stores were closed. Internet sales are expected to decline at a modest pace next month (-6 per cent).

The survey also found that retailers reported stock levels in relation to expected sales as good in March, after having been seen as poor in February (+15 per cent from -4 per cent). Firms expect stock positions to improve further next month (+22 per cent).

“Retailers had a mediocre March, with sales reported as being below seasonal norms. The cost-of-living crisis is looming large across the sector, as households’ wallets are being hit by the fastest rate of inflation.

“The chancellor’s spring statement outlined new support for those on low incomes amid these financial challenges. But further action will be needed to galvanise consumer confidence, shore up incomes, and support spending on UK high streets in the tough months to come,” Martin Sartorius, principal economist at the CBI, said.

ALCHEMPro News Desk (SF)