Retailers brace for another tough year amid stagnant sales and rising costs.
- Retail sales volumes remained flat for the third month in a row.
- No growth is expected in retail sales for February.
- Orders placed with suppliers fell from -10% to -17%.
- Sales were considered ‘poor’ for the time of year, but slightly improved from December.
- Non-specialised stores contributed positively to volume growth.
- Retailers of normal goods, furniture, and DIY stores saw negative contributions.
- CBI warns of a challenging year ahead for retailers due to modest disposable income growth.
- Digital disruption and policy costs continue to burden the retail sector.
- The upcoming Budget could provide support for retailers.
According to the latest CBI Distributive Trends Survey, retail sales volumes have remained stagnant for the third consecutive month, with no growth anticipated for February. The survey revealed that sales volumes were unchanged at 0% in January, mirroring December’s performance. Retailers are also reporting a decline in orders placed with suppliers, which dropped from -10% to -17%, with expectations of further decline to -19% next month. While sales were deemed ‘poor’ for this time of year, the situation has slightly improved compared to December. Notably, non-specialised stores, such as department stores, contributed positively to volume growth, but this was countered by declines in sectors like jewellery, furniture, and DIY stores. CBI’s deputy chief economist, Anna Leach, highlighted the ongoing challenges retailers face, including modest growth in disposable income and the impact of digital disruption and policy costs. With the upcoming Budget, there is hope for the chancellor to address the broken business rates system and provide much-needed support to the retail sector.
Factuality Level: 8
Factuality Justification: The article presents accurate information from the CBI Distributive Trends Survey and includes quotes from a relevant expert. It provides specific details on retail sales volumes, orders placed with suppliers, and sub-sector contributions to growth or decline. However, it does include some opinion from the CBI deputy chief economist about the future of the sector.
Noise Level: 6
Noise Justification: The article provides relevant information about the current state of retail sales and expectations for future growth, but it lacks in-depth analysis or actionable insights. It also includes some repetitive phrases and relies on expert opinions without providing strong evidence or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses retail sales volumes and expectations for future growth, which can impact companies in the retail industry and potentially affect financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.
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