(Alliance News) - Online shopping offered the UK retail sector some respite as tighter lockdown restrictions forced non-essential stores to close, according to the latest CBI quarterly distributive trades survey on Tuesday.
The CBI distributive trades survey's retail sales balance dropped two points from the previous month to negative 25 in November from negative 23 in October.
According to the CBI's survey of 114 firms - of which 57 were retailers - overall retail sales volumes fell in the year to November at a similar pace to the previous month, as a result of tighter lockdown restrictions.
However, internet sales grew at the fastest pace since October 2018, suggesting a substitution in spending away from in-store retailing during the month-long lockdown in England that started on November 5 and which shuttered all non-essential retail stores, the CBI noted.
The CBI said that against a backdrop of lockdowns across the UK, the overall level of sales was seen as below average for the time of year to the greatest degree since June. Looking ahead, retailers expect sales volumes to be broadly flat in the year to December, with the current English lockdown due to end next week.
"For many retail sectors, particularly those with less of an online presence, conditions remain extremely challenging. Retailers will be looking to salvage what they can from a very difficult year and many will be greatly relieved by the announcement that they can re-open over the crucial Christmas trading period. With encouraging progress on mass, rapid testing and vaccine solutions coming down the track, there is reason for growing consumer and business confidence going into 2021," said CBI economist Ben Jones.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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