According to the Confederation of British Industry (CBI), the British retail industry is cutting jobs and reducing investment on a large scale in response to the increasingly severe economic situation.
The organization said in a report on November 28 that the number of people employed in the retail industry fell from January to November, the first decline since August 2021. At the same time, investment intentions are also the biggest decline since the early stages of the new crown outbreak two and a half years ago.
Overall sales fell at a "steady rate," with furniture and rug stores, grocery stores and online retailers seeing the biggest declines. A similar decline is expected in December.
The findings reflect a cost of living crisis that is causing households to spend less on non-essential items ahead of the key Christmas sales period. Inflationary pressures show no signs of abating, with average sales prices rising at near the fastest rate in the survey's 37-year history.
The industry remains pessimistic about the outlook, the CBI said. Inventory levels are too high relative to expected sales, suggesting that near-term demand will be adequately stocked.
According to the survey conducted between Oct. 27 and Nov. 14, orders received by suppliers fell in November and a steeper drop is expected next month.