Retailers shed jobs as sales fall

RETAILERS are shedding jobs at their quickest rate since 1992 when the UK was firmly in the grips of recession.

The Confederation of British Industry said 15% of retailers are employing more staff than a year ago but a third are reporting falling employment levels.

The balance of minus 18% is the lowest since November 1992, with retailers expecting further falls next month.

Retailers said the volume of sales were at their weakest level since 1999, with 36% reporting poor trading volumes.

The figures reflect poor Christmas trading on the High Street, with several big names reporting worse than expected sales.

CBI chief economist Ian MacCafferty said: 'Weak consumer demand for goods means, so far this year, retailers have suffered minimal sales growth and falling prices. The retail environment has been particularly tough for sellers of big ticket items.

'It may be that high levels of personal debt, coupled with stagnant house prices, mean interest rate hikes have a bigger and quicker effect now than was the case in the 1970s, 80s and 90s.'

For the second month in a row, clothing retailers saw the fastest year-on-year sales growth followed by booksellers, stationers and grocers.

DIY and durable household goods, such as washing machines, suffered as the housing market slowed, while chemists suffered the sharpest fall in sales.