Stockpiling by UK retailers hits record levels amid Brexit fears and sales gloom

UK retailers fear Brexit shortages could undermine Christmas sales

Retailers are stockpiling goods as they brace themselves for Brexit uncertainty and the festive season, according to new figures from the Confederation of British Industry (CBI).

The organisation’s Distributive Trends Survey found that “stock levels in relation to expected sales” hit their highest level in October 2019 since the survey began in 1983.

The figures may suggest that retailers are concerned about Brexit shortages affecting Christmas trading, the busiest time of the retail year. The EU has agreed a Brexit extension until January 31, 2020, but as earlier reported the new delay leaves room for the UK to exit the EU before Christmas if a deal is ratified in time.

CBI figures also show that shoppers continue to be cautious in the face of Brexit uncertainty, with retail sales volumes in the year to October falling for the sixth consecutive month. The fall was at the gentlest pace in that period so far, but the CBI says the sixth-month slump is the longest period of decline since the global financial crash a decade ago.

What is your sentiment on EUR/GBP?

Vote to see community's results!

Rain Newton-Smith, CBI chief economist, said: “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with ongoing digital disruption, layered on top of cost pressures from a weak pound and the cumulative burden of an outdated business rates regime.

“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 November 1 is adding more strain to an already beleaguered sector.”

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image