Furlough scheme end impact on kbb sales

Kbb retailers are divided over the impact of the end of the Job Retention Scheme on consumer confidence and big-ticket purchases.

29 Sep, 21

Kbb retailers are divided over the impact of the end of the Job Retention Scheme on consumer confidence and big-ticket purchases.

Furlough scheme end impact on kbb sales

The Job Retention Scheme, which draws to a close on September 30, was created to save millions of jobs with up to 30% of the UK’s workforce furloughed at its peak in May 2020.

According to HMRC statistics, 484,000 employers still had 1.6 million staff on furlough on 31 July 2021.

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Now companies have to make the decision whether they can afford to take staff back or have to make them redundant.

According to a poll on LinkedIn, created for kitchen and bathroom retailers, nearly half (49%) believed the end of furlough would have minimal or no impact on sales.

Whereas, 37% of respondents believed it would have some impact on sales with a further 14% reporting it would have a massive impact on sales.

Managing director of buying group KBBG Bill Miller said sales were positive throughout his retailer network and predicted this would continue into 2022.

He commented: “The feedback, universally, across the country from our members is it has been very, very busy for them.”

He said sales were “very positive” and “very strong” and added: “I don’t get a sense of anything coming on the immediate horizon that would change that.

“I can foresee our dealers being busy for the remainder of this year and well into next year too.”

Client executive at AO.com Ruth Cox agreed: “We are certainly not seeing things slow down from AO Business.”

However, Bill Miller suggested the continued growth in sales could see ongoing stock shortages, proclaimed as the biggest challenge for kbb retailers, becoming a long-term problem for the kbb industry.

He stated: “It is something both the suppliers and retailers are going to have to get used to and it could potentially become the new normal.”

The LinkedIn Poll of kbb retailers about the impact of the end of furlough on consumer confidence and big-ticket purchases was run over a week and had 49 votes.