February 26, 2024
(press release)
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Retail sales in the year to February fell at modest pace following a sharp drop last month, according to the latest quarterly CBI Distributive Trades Survey. This marked the slowest decline in year-on-year sales over the ten-month run of falls so far. Looking ahead, though, sales are set to contract at a somewhat faster pace next month. Retailers also reported that selling price inflation in the year to February moderated to its lowest since May 2021. Employment in the sector fell again in a run that stretches back six quarters, and firms said that they plan to reduce investment for the eighth consecutive quarterly survey. The key survey findings included: Martin Sartorius, CBI Principal Economist, said: “The slump in retail activity eased in February following an exceedingly dreary start to the year. Nevertheless, with sales expected to continue falling next month, retailers are still planning to reduce headcount and investment going forward. Many retailers will expect to see further pressure on their margins due to the upcoming hikes in business rates and the National Living Wage. In the Spring Budget, the Chancellor should aim to cap the increase in the England business rates multiplier and work with the devolved administrations to do the same, which would help retailers return to a path to growth.”
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