Retail stockpiling soars on Brexit uncertainty
Retail stock levels in relation to expected sales soared to record levels this month as high street stores prepared for the crucial Christmas trading period and potential Brexit related disruption.
The spike in stock adequacy, which reached the highest level since records began in 1983, came as retail sales declined for the six consecutive month.
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Retail sale volumes in the year to October declined 10 per cent and orders placed on suppliers dipped four per cent. Despite the slump in consumer demand, retailers have continued to stockpile to prepare for Brexit disruption in the run-up to Christmas.
Meanwhile, year-on-year internet sales growth was 49 per cent this month, an improvement on the 33 per cent growth reported in September.
CBI chief economist Rain Newton-Smith said: “Retailers have now endured six months of falling sales, the longest period of decline since the financial crisis.
“The sector is struggling with ongoing digital disruption, layered on top of cost pressures from a weak pound and the cumulative burden of an outdated business rates regime.
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“Retailers have also had to contend with the looming Brexit deadline, which has partly driven a record spike in stocks. The timing could not be worse.
“The run-up to Christmas is a crucial time of year for the retail sector, and not knowing where we will be on 1 November is adding more strain to an already beleaguered sector.”
Main image credit: Getty