Article 52RWA UK retail suffering from collapse in consumer spending, says CBI

UK retail suffering from collapse in consumer spending, says CBI

by
Larry Elliott
from on (#52RWA)

Two-thirds of firms say Covid-19 lockdown hit sales in worst month since financial crisis

Almost two-fifths of Britain's retailers have closed for business completely as a result of a Covid-19 lockdown that has prompted a collapse in consumer spending unmatched since the financial crisis in late 2008.

April's monthly health check of high street and online sales from the CBI reported that two-thirds of businesses had been adversely affected by the pandemic and almost all said they were experiencing cashflow problems.

67% of retailers said the Covid-19 outbreak was having a significant negative impact on their sales.

39% of retailers reported a total shutdown of UK activity due to the outbreak.

44% of retailers reported furloughing staff, while 8% reported permanent staff layoffs.

96% of retailers reported cashflow difficulties, with 40% facing difficulties meeting tax liabilities. A further 31% of retailers also faced constraints on the availability of external finance.

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