UK’s retail sales in March were judged to be good for the time of year, at 12 per cent from 6 per cent in February. Retailers expect sales to exceed seasonal norms to a broadly similar extent—13 per cent—next month, according to the CBI’s latest Distributive Trends Survey.

Orders placed upon suppliers were broadly unchanged in the year to March, at -2 per cent from -25 per cent in February, and are expected to remain unchanged next month.

Retailers considered stock volumes in March to be elevated relative to expected sales, and to a broadly similar extent as last month, at 10 per cent from 8 per cent in February. Stock positions are expected to ease slightly next month but remain ‘too high’, at 6 per cent.

Martin Sartorius, CBI principal economist, said: “It’s encouraging that activity in the retail sector showed signs of stabilising after a challenging winter. This resilience has helped inspire some spring shoots of optimism, with firms expecting an increase in sales for the first time since last September.

“The chancellor’s decision to back CBI calls to increase support for occupational health and expand childcare provision will help address some of the labour shortages that retailers are currently facing. However, these measures alone do not go far enough for the sector. In particular, more will need to be done to tackle retailers’ ongoing skills gaps, such as through transforming the Apprenticeship Levy into a more flexible Skills Challenge Fund.”

Moreover, online sales continued to fall at a firm pace in the year to March, at -26 per cent from -30 per cent in February. Retailers expect a modest expansion of 5 per cent in online sales next month.

Elsewhere in the distribution sector, wholesale volumes grew at a firm pace in the year to March—18 per cent from -28 per cent in February. Wholesalers expect sales to remain broadly unchanged next month at 2 per cent.

The survey was based on the responses of 135 companies, including 48 retailers.

Fibre2Fashion News Desk (NB)