Retailers warned that after months of stagnant supply caused inventory levels in July to drop to historical lows for the second consecutive month, they may have trouble meeting demand and fill up shelves before the fall.
CBI calls it Monthly survey of large companies The entire retail and wholesale industry found that the consumer frenzy on the streets of the UK this month has expanded their ability to purchase important supplies.
CBI data shows that in the year to July, the growth rate of retail sales was much higher than the long-term average, while the growth rate of orders was the fastest since December 2010. It is expected that sales and orders will continue to grow strongly next month.
However, a survey of 124 companies (including 51 retailers) conducted between June 25 and July 15 found that compared with the expected sales of the entire distribution department, inventory levels reached 1983 for the second consecutive month. The lowest point since.
Thousands of companies reported that supply difficulties were due to the interruption of British ports Brexit, Red tape and Covid-19 restrictions. As the “epidemic” requires employees to self-isolate after contact with people who have tested positive for Covid-19, labor shortages, especially among road transporters and delivery drivers, have also caused supply disruptions in warehouses and stores.
The report said: “Retail, wholesale and automobile trade departments have reported that the relevant inventories are too low, and the situation is expected to deteriorate further in August.”
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According to the comprehensive response of retailers, sales in July increased by 23%, only slightly lower than the 25% in June. Orders grew at the fastest rate since December 2010, an increase of 49% from June’s +30%. The balance is the weighted difference between the percentage of retailers reporting an increase and the percentage of retailers reporting a decrease.
CBI stated that Internet sales, which soared during the pandemic, stagnated after the growth rate fell from 21% in June to the lowest record in July, at only 2%. Analysts had previously expected that as people returned to high-street stores after the lockdown, online sales growth would cool.
CBI Chief Economist Ben Jones said: “Although demand may be more stable, operational problems will worsen. Relative inventory levels are at historically low levels and are expected to fall further. What many companies are most worried about is labor shortages throughout the supply chain. Because the employees are self-isolating.”
