Grocery sales slumped in May, with volumes down 25% on the same time last year. This according to the latest CBI quarterly Distributive Trades Survey, which polled 121 firms – 60 of which were retailers.
The survey also revealed that retailers expect a marginal improvement in the business situation in the next three months, but expect to cut headcount in June (following no growth in employment this month).
Meanwhile, wholesaling saw continued growth, with 41% of wholesalers reporting sales volumes to be up on last year, and 15% saying they were down, giving a rounded balance of +27%.
Rain Newton-Smith, CBI Director of Economics, commented: “Even though low inflation is still boosting pay packets, retailers are continuing to operate in a tough environment, with strong price competition squeezing margins.”
