The latest CBI quarterly Distributive Trades Survey has shown that retail sales volumes have been above average this month, as shoppers returned to physical stores in the wake of Omicron.
The key findings of the report showed that in February, sales were up 16%, following a weaker than usual January (-23%). Seasonal sales are expected to be average in March.
Retail selling prices, however, continued to grow rapidly in the year to February and were up 75% from +77% in November, with a slight acceleration expected again in March of +81%.
Internet sales declined in the year to February and were down 11%. This figure is only the second time in the history of the survey that online sales have fallen.
Despite an improvement on January, retail stocks in relation to expected sales were down 4%. Expectations are for this figure to improve slightly in March (+4%).
Martin Sartorius, principal economist at the CBI, commented: “The easing of Covid-19 restrictions – including the end of work-from-home guidance – has, unsurprisingly, encourage shoppers to return to the high streets.
“There are other challenges facing retailers, however. Conflict in Ukraine means energy prices and transport costs will rise further, adding more pressure on retailers’ operating costs and biting into households’ spending power.”
