UK retail sales stabilise in March after 10 months of decline: CBI

27 Mar '24

2 min read

Pic: Adobe Stock

Insights

UK retail sales stabilised in March 2024 after ten months of decline, as per a CBI Survey, but a 25 per cent drop is expected in April.
Sales were 'average' for March, order volumes fell sharply, and stock levels were 'adequate.'
Internet sales dipped significantly, with a less sharp decline expected in April.
Wholesale volumes contracted.

Optimism has cautiously returned to the UK retail sector in March, as there was a stabilisation in retail sales volumes, breaking a ten-month trend of continuous decline, according to the latest findings from the Confederation of British Industry (CBI) Distributive Trades Survey. However, the future remains uncertain, with expectations of reduced sales volumes in April looming over retailers. The survey found that sales volumes in March were broadly flat compared to the same period last year, showing a weighted balance of 2 per cent, a significant improvement from minus 7 per cent in February.

Despite this stabilisation, retailers are expecting sales to dip by 25 per cent in the upcoming month, as per the survey.

Retailers reported that sales for March were considered ‘average’ for the time of year, marking a slight improvement from February's figures. However, expectations for April suggest sales could be slightly below the seasonal norm, with forecasts indicating a minus 8 per cent deviation.

Order volumes experienced a sharper decline in March than in the previous month, with the pace of contraction accelerating to minus 22 per cent from minus 14 per cent in February. Retailers anticipate a similar decline in order volumes for April, expecting a minus 24 per cent balance.

Stock levels were deemed ‘adequate’ in relation to anticipated sales, showing a slight dip to minus 1 per cent from 17 per cent in February. Expectations for the next month predict stock positions will remain broadly unchanged, with a forecasted balance of 2 per cent.

The survey also shed light on the performance of internet sales, which saw a significant downturn in March, falling to minus 27 per cent from a growth of 4 per cent in February. The outlook for internet sales in April is somewhat less bleak, with a slower expected decline of minus 12 per cent.

The wider distribution sector reflected a mixed picture, with wholesale volumes experiencing a slight contraction in March after a period of growth.

Fibre2Fashion News Desk (DP)

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