The Confederation of British Industry’s (CBI) statistics showed a slight fall in sales for the month of July, after June’s figures saw its highest rate since 2018.
The measure of sales volume for the month of July were +23, compared to July 2020, a small dip from +25 in June. Despite the fall in sales, retailers told Reuters that they had expected a bigger decline to +21 and sales were also reported to be higher than usual levels for the time of year.
Ben Smith, principal economist at CBI, said: “Retail sales have been at or above seasonal norms for the last four months now, although this picture is not universal, with the clothing and footwear stores in particular yet to see demand recover to usual levels.”
While sales remain strong, however, stock levels continue to be hit by the effects of the pandemic and Brexit, and retailers expect the situation to worsen in August.
Ben continued: “While demand may be more stable, operational issues worsen. Relative stock levels are at a record low and expected to fall further still, while the number one worry for many firms at the minute is labour shortages throughout the supply chain as staff self-isolate.”
