A year ago department store John Lewis said it was “too hot to shop” as Britain basked in a heatwave — but today the CBI said the High Street had ground to a halt as shoppers shivered and inflation hit wallets.
Retail sales stagnated during early March as six months of fading growth in volumes finally vanished completely, according to the business group’s latest distributive trades survey. Sales volumes were well below average for the time of year.
The gloom increases the risk of a triple-dip recession with wintry conditions still gripping much of the country, and dampens cheer over official figures for February showing a 2.1% bounce in sales.
The CBI holds out prospects of an April recovery, but Asda’s chief merchandising officer Barry Williams said that a “glimmer of hope” for retailers had faded away. He added: “Pay freezes and the rising cost of living are hitting households hard and, added to a challenging economic picture, there may well be more tough trading conditions ahead.”
Richard Lowe, head of retail & wholesale at Barclays, said retailers, particularly in the North, will be “somewhat concerned” about the current cold snap’s impact on sales of spring and summer ranges.
