A poor retail climate has contributed to the sector’s sharpest fall in employment in 23 years, according to new data.
February figures from the Confederation of British Industry (CBI) show that last year’s downturn has contributed to the biggest decline in jobs in the 23-year history of its quarterly distributive trades survey.
Some 37% of shops reported a fall in jobs while just 11% noted a rise. The resulting balance of –26% a mark of –15% in November’s, and the CBI said it expects employment levels in the sector to continue their slide on into March.
Meanwhile, the survey showed that 40% of shop owners reported sales volumes that were down on a year ago, while just 22% enjoyed increases. The negative balance of –18% compares with –11% in January.
The CBI predicted more modest decline in totals for the year to March.
Sales improved, however, over three-month period, as November’s record low dropped out of the figures.
But the CBI warned that sales are still below seasonal average.
“With rapidly rising household bills for energy, water and council tax, it's no wonder that consumers remain cautious about spending money except on basics such as food,” John Longworth, executive director of Asda and chairman of the CBI’s survey panel.
“Competition in the high street remains tough as stores continue to tempt shoppers with discounts and other promotional offers.
“At the same time, retailers’ margins are being squeezed by sharp rises in the cost of energy utilities, rent and rates, environmental taxes and the minimum wage.”
The survey found that firms expect to make less capital expenditure over the next 12 months compared to the previous year. However investment intentions were less weak than in the previous quarterly survey.
