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Xmas boost as high street sales strengthen

HIGH street retailers are recording higher sales volumes on last year for the fifth consecutive month, according to a survey.

The CBI’s latest quarterly Distributive Trades survey revealed that sales grew most favourably for grocers and clothing retailers in November.

Looking ahead to the crucial pre-Christmas period, retailers expect strong sales volume growth to continue in December (+45%), and a net 11% of retailers expect the overall business situation to improve over the next three months.

Ian McCafferty, CBI Chief Economic Adviser, said: “High street sales growth held up well in November, and retailers are hopeful that the run-up to Christmas will be just as strong.”

The surveys showed that 55% of retailers saw the volume of sales rise in the two weeks to November 10th, while 13% said they fell. The resulting rounded balance of +43% was in line with expectations, and an improvement on October’s balance of +36%. However, a net 6% of retailers said sales in November were below average for the time of year.However CBI’s chief economic adviser is warning that the industry is not taking anything for granted.

Ian McCafferty, added: “ Looking into the New Year, retail sales growth may lose some of its sparkle, as consumers rein in spending after Christmas. “Confidence remains fragile, VAT is rising in January, and a combination of weak wage growth and high inflation is eating into household incomes.”

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