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High Street sales improving, say CBI

High street sales showed further improvement in the year to June, although sales remained below the expected levels for this time of year, according to latest statistics.

In its latest monthly Distributive Trades Survey, which included the first two weeks in June, the CBI found that 58% of retailers had witnessed increased sales volumes, while 17% said that sales had fallen, resulting in a rounded balance of 42%. This was significantly stronger than figures expected by retailers, and was the fastest growth witnessed since December 2010.

Many businesses also saw an increase in orders, and expect this trend to continue into July - despite the fact that the pace of growth is expected to ease slightly relative to June.

Judith McKenna, Chair of the CBI Distributive Trades Panel and Asda Chief Operating Officer, said: “Retailers have continued to report strong growth in both their sales and orders. The Jubilee provided a much-needed boost to our high streets with many families and communities making the most of the Bank Holiday and coming together to celebrate.

“However, it is notable that sales were still considered to be below par for the time of year. Weak consumer confidence and uncertainty over the economic outlook are still putting a brake on consumer spending across the whole retail sector.”

Several retail sub-sectors witnessed an improvement in year-on-year growth, with 85% of grocers 69% of clothing retailers witnessing increases in sales.

A balance of 96% of footwear and leather retailers saw an increase in sales – this was the highest survey balance on record, but the rate of growth was similar to those seen at the end of 2010 (95%).

Among wholesalers, 33% reported a rise in the volume of sales, while 32% saw a fall, meaning that sales volumes were broadly flat on a year ago (16%). This followed consistent sales growth since December 2011.

Motor traders saw a third consecutive fall in their volume of sales (-5%), but expect growth in the month ahead (38%).

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