Member Article

Summer sales bring no relief for troubled high street

The summer sales have failed to lure shoppers back onto the high street, as sales volumes in July fell particularly sharply, while the outlook for August remains bleak, the Confederation of British Industry (CBI) said yesterday.

Sixty one per cent of respondents to its latest Distributive Trades Survey reported that sales in the first half of July were lower than a year ago, while 25% said sales had increased.

The resulting balance of -36% was the weakest since the survey began in 1983, and a similar fall in sales is expected in August (-32%).

The weak sales have echoed up the supply chain and hit the volume of orders placed with suppliers. Andy Clarke, Chairman of the CBI Distributive Trades Panel, and Retail Director of Asda, said: “It is turning out to be a very grim summer for many retailers. Pressure from higher fuel and food prices is prompting many people to rein in their spending, proving that value retailing has never been more important.

“The faltering housing market has really depressed sales of home furnishings and white goods this month and the high street is still struggling, but supermarkets are faring better.

“The retail sector will have to focus more than ever on providing good value to customers if they want to keep the sun shining this summer.”

Examining the individual sectors, demand for big-ticket items was especially weak, with every respondent selling durable household goods, furniture and carpets reporting that sales were down on a year ago. Clothing retailers also endured another poor month.

Grocers, including supermarkets, and footwear & leather retailers were theonly sectors to report year-on-year sales growth.

This was posted in Bdaily's Members' News section by Ruth Mitchell .