MNI DATA: UK Retail Sales Sluggish In January: CBI

-- Retail Sales Volumes Balance 0 Vs -13 In December

By Jai Lakhani

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

January, showing an inability to recover from December's disappointing reading,

the CBI survey published Friday showed.

     The reported sales volume balance did rise to 0 after -13 in December, but

December's 32 point decline was the steepest since October 2017. As a result,

the three month average was down to +2 from +4 in December and below retailers

anticipated +13. 

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

to pick up in February with the volume of sales expected to be +24. 

     Declines were seen in sales volumes across 9 of 13 sub-sectors.

Predominantly driving the fall were drops in clothing, followed by other normal

goods and specialist food & drink. Clothing sales volumes were at -43, its

joint-lowest reading since April last year. 

     However, this was offset by strength in sales from grocers and non-store

sub-sectors. The non-store sub sector has now seen growth in sales volumes for

the past nine months in a row. 

     Year-on-year growth in internet sales volumes slowed a touch to +47 in

January but remain picked up to broadly in line with the long-run average.

However, the reading is anticipated to drop below the long-run average in

February to +33. 

     --BREXIT CONCERNS

     "The High Street has had another challenging month, with retail sales

volume flat and well below average for the time year. Pressures on the retail

sector remain high, with consumer spending expected to remain fairly subdued and

competition fierce," said Rain Newton-Smith, CBI Chief Economist.

     "There are early signs of companies bracing themselves for a no-deal

Brexit: some of our wholesalers are now reporting that they're building up

stocks in case the UK exits the EU without a deal. It's absolutely vital

politicians act immediately to take No Deal off the table, protect the UK

economy and avoid devastating disruption," she added. 

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

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

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