Retailers have warned of steeper staff cuts over the coming month as a double whammy of declining sales and looming Budget-related cost increases weigh.
According to the Confederation of British Industry (CBI), retail sales volumes fell by a weighted balance of 23% in February, following a 24% decline in January.
Staff headcount across the sector fell by 13% in the meantime, with firms forecasting steeper reductions in March as sales fell at a sharper pace.
“Persistently weak demand conditions and the impact of the Autumn Budget have dampened retailers’ sentiment, contributing to the steepest deterioration in investment intentions in nearly six years,” CBI economist Martin Sartorius said.
Retailers have flagged price rises and job cuts in response to higher employer national insurance from April, unveiled in last October’s Budget, and wage growth.
The CBI’s survey also showed falling online, wholesale and motor sales, as orders to suppliers declined and were forecast to slip at a faster rate in March.