Retailers continue slow start to 2018

UK retail sales growth slowed for the third month in a row in the year to February, according to the latest CBI Quarterly Distributive Trades Survey.

32% of respondents reported that sales volumes were up on a year ago in February, while 24% said they were down, giving a balance of +8%. Retailers expect things to pick up again next month (+21%), with 34% expecting them to rise and 13% to fall. Meanwhile, there was year-on-year growth in online sales volumes (+45%), although this did ease slightly from January (+55%).

Anna Leach, CBI Head of Economic Intelligence, says: “While trading conditions remain tough, it’s encouraging to see retailers’ investment intentions improving to their highest since August 2015, in addition to signs of renewed business optimism for the first time in more than a year. With labour-intensive businesses such as retailers finding it increasingly difficult to find workers, agreeing a jobs-first transition between the EU and the UK, in writing, by the end of March would provide some much-needed certainty.”