Fastest Retail Employment Drop Since 2009 Raises Concerns for Future

  • Retail employment fell at the fastest rate since February 2009
  • CBI’s latest monthly Distributive Trades Survey shows slight fall in retail sales compared to a year ago
  • Groceries, furniture and non-store ‘other’ goods sales were the only sectors with growth
  • Retail sales were 27% lower than normal conditions on average
  • Orders fell for sixteenth consecutive month
  • Stock levels in relation to expected sales at lowest since March
  • Alpesh Paleja, CBI lead economist, suggests further support may be needed for retail sector

The retail sector is experiencing its sharpest job loss since February 2009, according to the CBI’s latest monthly Distributive Trades Survey. The survey, which included 63 retailers out of 128 respondents, also revealed a slight decline in sales compared to last year after broadly flat sales in July. Grocers, furniture and carpets, and non-store ‘other’ goods were the only sectors with growth. Retail sales were on average 27% lower than normal conditions. This marks an improvement from June (-79%). The survey also showed orders fell for the sixteenth consecutive month, while stock levels in relation to expected sales reached their lowest since March. Alpesh Paleja, CBI lead economist, stated that the furlough scheme has protected some sectors during the pandemic but may have only delayed job losses. He added that retailers might need more support due to potential local lockdowns and deteriorating household incomes. Extending business rates relief could help alleviate pressure on their cash flow.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the decline in retail employment and sales based on the CBI’s Distributive Trades Survey. It also includes relevant quotes from an expert to provide context and analysis of the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in retail employment and sales during the pandemic, but it lacks in-depth analysis or actionable insights. It also does not explore the consequences of decisions on those who bear the risks or provide antifragility examples.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the decline in retail employment and sales, which can impact companies within the retail industry and potentially affect financial markets due to their influence on the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk