Upcoming has poured chilly h2o on the prospect of a festive season sales boom soon after warning that supply chain difficulties and shortages of lorry drivers and warehouse staff would hold back advancement.
The retailer posted a 14pc boost in sales in the previous five weeks compared to the similar period of time pre-pandmeic, but flagged a slowdown in trade for the rest of the 12 months.
Elements which include labour shortages and the wider supply chain disruption, as perfectly as dwindling pent-up desire and frail buyer confidence, would signify a sales boost of just 10pc in the up coming quarter, Upcoming mentioned.
Stock availability experienced improved but remained “tough”, the firm mentioned. It warned that selling price rises in “critical items” this kind of as fuel might “average desire” and lower sales advancement by the festive season. “The results of pent‐up desire are likely to continue to diminish.”
Yet, Upcoming preserved its total-12 months revenue assistance of £800m as it posted a 17pc rise in sales in the a few months to October 31 compared with the similar period of time in 2019.
Online sales ended up also up by practically 50pc in the 12 months to October, boosted by third-party model purchases, although in-retail outlet sales ended up down close to 30pc.