# UK retail sales growth slides as Omicron hits – CBI Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-21 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: British Retail Sales Fall Sharply in December Due to Meta Description: Survey shows sharp fall in December with CBI warning of chilling impact on high street and calls for more government support amid rising COVID-19 cases. URL: https://financedigest.com/uk-retail-sales-growth-slides-as-omicron-hits-cbihtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-12-21t111858z2lynxmpehbk0e2rtroptp4health-coronavirus-britain-retail-1736836542286-compressed.jpg) By David Milliken LONDON (Reuters) -British retail sales growth fell sharply in the first half of December as concerns about the Omicron variant of coronavirus kept shoppers at home, according to a survey which could add to pressure on the government to provide more emergency support. The Confederation of British Industry’s gauge of sales volumes – which asks retailers how sales compare with a year ago – slumped to +8 in December from +39 in November, its lowest reading since non-essential shops were in lockdown in March. Our December survey confirms what we’ve been hearing anecdotally about Omicron’s chilling impact on activity on the high street, with retail sales [growth slowing](https://www.financedigest.com/uk-recruiters-slow-pace-of-pay-growth-in-march-rec-survey-shows.html "UK recruiters slow pace of pay growth in March, REC survey shows") and expectations for the coming month sharply downgraded,” CBI economist Ben Jones said. Cases of COVID-19 have risen by more than 60% in Britain over the past week, with around 90,000 people a day [testing positive](https://www.financedigest.com/biden-tests-positive-for-covid-has-mild-symptoms-taking-paxlovid-treatment.html "Biden tests positive for COVID, has mild symptoms, taking Paxlovid treatment") recently. [Prime Minister](https://www.financedigest.com/economist-odor-picked-as-slovakias-caretaker-prime-minister.html "Economist Odor picked as Slovakia’s caretaker prime minister") Boris Johnson has so far refrained from further legal restrictions to slow the spread of the new variant, but has not ruled out taking more action. [Business groups want finance minister Rishi Sunak](https://www.financedigest.com/uks-sunak-to-halve-support-that-helps-businesses-pay-fuel-bills-the-times.html "UK’s Sunak to halve support that helps businesses pay fuel bills -The Times") to provide more help. Sunak was [due to comment soon about his discussions with representatives of the hospitality industry who are demanding more government](https://www.financedigest.com/uniper-ceo-to-resign-due-to-government-takeover.html "Uniper CEO to resign due to government takeover") support, a minister said. It’s crucial that the [government takes steps to help society live confidently with the virus, including meaningful dialogue between business, government and unions to assess the impact of restrictions and the need for future support,”](https://www.financedigest.com/local-government-business-support-getting-worse-report-shows-as-70-of-uk-firms-say-its-not-good-enough.html "Local government business support getting worse, report shows, as 70% of UK firms say it’s not good enough") the CBI’s Jones said. The increase in cases has been especially sharp in London. [Shopper numbers fell 8.5% in central London](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan") last weekend and by less in other city centres, according to figures from market research company Springboard published on Monday, while the hospitality industry says takings were down by 40%. The CBI survey showed retailers expected [sales to be roughly normal for the time of year](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study") in December – having been well above in November – and to be below normal in January. Retailers had plenty of stock for now, but feared [staff absences could lead to renewed disruption](https://www.financedigest.com/uk-airports-face-christmas-disruption-as-border-staff-to-strike.html "UK airports face Christmas disruption as border staff to strike") of supply chains next month, the CBI added. Samuel Tombs, economist at Pantheon Macroeconomics, said the slowdown could also reflect how some households did [Christmas shopping earlier than normal this year](https://www.financedigest.com/scam-special-how-to-avoid-christmas-shopping-fraud-this-year.html "Scam Special: How to Avoid Christmas Shopping Fraud this Year"). We think that [retail sales](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") should be relatively immune to the impact of the Omicron variant, particularly if consumers shift spending away from services venues,” he said. The [survey was based on responses from 41 retail](https://www.financedigest.com/retailers-weighed-down-by-their-own-legacy-systems-survey-reveals.html "Retailers Weighed Down by their own Legacy Systems, survey reveals") chains between Nov. 24 and Dec. 14. (Reporting by David MillikenEditing by William Schomberg) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---