MNI DATA: UK Retail Sales Disappoints Again In February: CBI

-- Retail Sales Volumes Balance 0 Vs 0 In January

By Jai Lakhani

     LONDON (MNI) - UK retailers reported flat growth in retail sales volume in

February for a second consecutive month, showing an inability to recover from

December's disappointing reading, the CBI Distributive Trades survey published

Friday showed.

     December's decline was the steepest since October 2017 and thus a second

consecutive flat reading shows an inability to recuperate the weakness which

closed out 2018. Consequently, the three month average was down to -4 from +2 in

January. 

     A slightly more encouraging take on the data is that retailers expect sales

to pick up in March with the volume of sales seen at +39. However, retailers

ex-ante expected sales of +24 in February only to come up noticeably short. 

     Declines were seen in sales volumes across footwear & leather, furniture &

carpets and hardware & DIY. The only sectors to experience growth in volumes

were grocery, clothing, recreational goods and non-store sub-sectors. 

     Year-on-year growth in internet sales volumes remained at +47 in February,

relatively in line with the average. However, the reading is anticipated to drop

in March to +40. 

     Conditions are evidently tough for the retail sector. This is supported by

the fact that headcount dropped for the ninth quarter in a row and at a faster

pace than November. Undoubtedly more disconcerting is the fact that investment

intentions for the year ahead are at their weakest levels since February 2012. 

     --THE B WORD 

     "Retail investment plans have taken a hit this quarter, falling to their

weakest since 2012. Until politicians can agree a (Brexit) deal that commands a

majority in parliament, is acceptable to the EU and protects our economy,

business despair will deepen," warned Anna Leach, CBI Head of Economic

Intelligence.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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