According to the Confederation of Business Industry’s (CBI) Distributive Sales Survey, retail sales fell heavily in the year to February but were not as weak as in the last survey although jobs in the sector were lost at a record rate.

Some 27% of retailers said year-on-year sales volumes rose in the first half of February, while 52% said they were down. Supermarkets, footwear and leather shops enjoyed strong sales growth in February, but sales volumes contracted heavily elsewhere particularly hardware, china and DIY, durable household goods, books and clothing.

The resulting balance of -25% marked a fall in sales, but was not as severe as January (-47%) and was significantly better than expected (-52%). The decline in sales is expected to worsen slightly in March (-33%).

The quarterly questions showed that employment conditions worsened sharply over the year to February, and a balance of 49% of retailers said they had cut their headcount, which was the lowest since the quarterly survey began in August 1983. A similar record rate (a balance of -45%) of employment reduction is expected for March.