Retailers expect sales to remain broadly unchanged in November, with a slight expected decrease of 1%.
October 29, 2024
Retail sales volumes in the UK experienced a 6% decline in October 2024, following 4% growth in September, as reported by the latest CBI Distributive Trades Survey.
The survey, conducted from 26 September to 15 October, included responses from 177 participants: 70 retailers and 91 wholesalers.
Retailers are anticipating sales to remain broadly unchanged in November, with a slight expected decrease of 1%.
Sales for the time of year saw a significant downturn, with a 25% decrease compared to an 11% decline in September.
Seasonal sales are predicted to remain weak, with a forecasted drop of 27% for November.
Meanwhile, internet sales volumes maintained robust growth at 21% in October, building on the previous month’s 18% increase.
Retailers expect online sales to accelerate further to a growth rate of 27% in November.
The report also noted that orders placed on suppliers declined by a marginal 5% year-on-year in October, an improvement from the 14% fall observed in September.
However, retailers are preparing for a sharper reduction of orders by 24% in November.
During the month, wholesale sales volumes also decreased by 14%, with predictions of a sharper November drop of 20%.
CBI principal economist Martin Sartorius said: “Retail sales volumes slipped back slightly in October, with some firms highlighting increased consumer caution ahead of the Autumn Budget [in late October] as a key factor.
“This weakness in activity was reflected across the broader distribution sector, with wholesale and motor trade firms also reporting declining sales. Looking ahead, retailers aren’t expecting an immediate turnaround, with annual sales set to be flat in November.
“We are looking for reform of business rates in Wednesday’s Budget. The sector will be looking for a bridging solution beyond April 2025, when temporary business rates reliefs come to an end. This measure should support the sector while a more comprehensive reform of the business rates system is undertaken.”
Source from Retail Insight Network
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