Stock levels drop to lowest points in 38 years
UK retailers have disclosed the highest seasonal sales levels for over four years in June, CBI revealed.
As consumers returned to High Street, inventory levels fell to their lowest points in nearly 40 years.
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“This was the latest indication that the success of the vaccination program is giving us to strengthen consumer confidence,” said Ben Jones, CBI economist.
The Bank of England is monitoring whether supply bottlenecks caused by the pandemic will lead to inflationary pressures going forward.
“After a generally pessimistic 2021 so far, the sun was finally shining for retailers in June. Since November 2016, seasonal sales have been the strongest ” Jones said.
This is the demand that retailers have struggled to accommodate stock levels compared to when expected sales reached the lowest level since CBI began recording numbers in 1983 .
Clothing store sales are declining over time, as they mean that people delay buying new items than in the summer due to lack of clarity in travel restrictions.
CBI expects sales to continue through July, with a few exceptions.
“The sector has come a long way from a full recovery,” Jones said. “Demand return is patchy and footsteps in the city centre are still significantly lower. We expect the outlook is somewhat clouded by supply pressures, and logistics and capacity challenges continue to hinder global activity. It is considered too low compared to sales.”
