Skip to content
Search
AI Powered
Latest Stories

Omicron shadows December retail sales

Omicron shadows December retail sales
Members of the public, some wearing face coverings to help combat the spread of Covid-19, walk along a shopping street off of Oxford Street in London on December 21, 2021. (Photo by Tolga Akmen / AFP) via Getty Images)
AFP via Getty Images

Christmas has been dashed for retailers due to the arrival of the Omicron variant as a recent snapshot of consumer activity shows that retail sales growth has slowed down sharply in the year to December, in contrast to last month’s expectations for a further acceleration.

According to CBI’s monthly distributive trades survey, there has been a general deterioration in reported and expected sales growth across the distribution sector following the announcement of Plan B measures on Dec 8.


Retail sales growth slowed in the year to December (balance of +8 per cent from +39 per cent last month). Sales are expected to grow at a similar pace next month (+5 per cent).

The employers’ lobby group said sales growth had eased to its lowest since the spring, confounding expectations among retailers that they would build on November’s strong performance.

More than half of firms that responded before the government’s plan B announcement on 8 December said sales were higher than last year, against a third of those that responded on or after that date, said the CBI’s report. The survey was conducted on 109 companies, including 41 retailers, between 24 November and 14 December.

Orders placed with suppliers grew at a faster pace in the year to December than in November, with a slower rate of growth expected next month. Stock levels in relation to expected sales were reported as more than adequate for the first time since February this year and they are expected to be broadly adequate in January 2022.

Retail sales were seen as broadly in line with seasonal norms in December, having been well above typical levels in November.

Retailers are pessimistic about the outlook for January, says the CBI’s survey report.

“Our December survey confirms what we’ve been hearing anecdotally about Omicron’s chilling impact on activity on the High Street, with retail sales growth slowing and expectations for the coming month sharply downgraded,” said Ben Jones, CBI Lead Economist.

“On the supply side, retailers have been making progress in building up stocks, which were seen as more than adequate to deal with expected demand over Christmas. The concern now is the potential for rapidly rising sickness and staff absences to cause renewed disruption to supply chains in the New Year.

“It’s crucial that the Government takes steps to help society live confidently with the virus, including meaningful dialogue between business, government and unions to assess the impact of restrictions and the need for future support.”

More for you

Budget 2024: Local shops to face significant new pressure

(Photo by JUSTIN TALLIS/AFP via Getty Images)

(Photo by JUSTIN TALLIS/AFP via Getty Images)

Budget 2024: Local shops to face significant new pressure

Local shops will face significant new pressures as a result of today’s Budget, the Association of Convenience Stores (ACS) has warned.

Chancellor Rachel Reeves' budget's impact will be felt unevenly across the UK’s 50,000 convenience stores, with some measures such as business rate relief and the increased employment allowance mitigating costs for smaller independent stores, while providing no help for chains and larger independent businesses.

Keep ReadingShow less
Post Office cash deposits and withdrawals
Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services

Parliament to launch inquiry into Post Office Horizon scandal compensation delays

Parliament is to launch an inquiry into delays in compensation settlements for sub postmasters affected by the Horizon scandal.

The newly-formed Business and Trade Select Committee will call ministers, subpostmasters and their lawyers to give evidence next week with a second session to follow in mid-November. The Committee’s chair, Liam Byrne MP told ITV News that there was “definitely a delay” in people coming forward for payment.

Keep ReadingShow less
C-store body warns of 'inflation-busting increase in wage costs'
Woman Holding British Pound
Getty Images/iStockphoto

C-store body warns of 'inflation-busting increase in wage costs'

Convenience store body Association of Convenience Stores (ACS) today (30) has warned the Chancellor about the negative effects of the new National Living Wage (NLW) increase, a day after the Chancellor announced a pay rise for over 3 million workers next year, with NLW rates rising by 6.7 perc cent.

From April 2025, the NLW will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate.

Keep ReadingShow less
Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Robbie MacDonald via LDRS

Shop’s licence bid rejected over illegal vapes and ‘no regard’ for children’s safety

A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.

Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.

Keep ReadingShow less
SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.

Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.

Keep ReadingShow less