Great Britain’s Retailers Report Unexpected Fall in Retail Sales

Retail sales in Great Britain have dipped for the fifth consecutive month, The Guardian reported. The 0.2% decline in September was unexpected, comes despite the removal of most pandemic-related restrictions and marks the worst slump since modern records began in 1996.

The Office for National Statistics said sales volumes fell for household goods stores, pharmacies, toy stores and sports equipment stores, according to the report. Increases were reported for clothing stores, department stores and food shops.

Fuel sales rose, too, reflecting panic buying toward the end of the month, as there were problems with fuel deliveries, the report stated.

The September figures were announced amidst mounting fears about the strength of the economy as well as rising inflation and shortages of workers and goods, according to the report.

Looking ahead, retail spending is expected to recover in October as consumers begin their Christmas shopping early due to concerns about the availability of some toys and gifts, the report stated.

Businesses have had to pick up the pieces in the two years since the U.K. officially left the European Union, trying to survive amid falling revenues, additional tax and duties, and supply chain disruptions.

Read more: Brexit-Related Frictions Drive Demand For eCommerce Fulfillment and Logistics

In addition, England’s central bank said one-third of the small businesses in the U.K. are highly indebted, and it warned of a rise in small business failures by the end of the year.

See more: One-Third of UK SMBs ‘Highly Indebted’

The percentage of small businesses that are indebted is more than double the amount since before the pandemic, leading the Bank of England to warn of possible fallout from higher risk-taking and to caution banks to be more prudent when it comes to digital assets.

According to the bank, small businesses, many of which hadn’t borrowed before — and some of which would not have met lending criteria before the pandemic — made up two-thirds of the increase in U.K. corporate debt between the end of 2019 and the first quarter of this year.