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Heatwave brings in profits for retailers

Hot weather and early summer sales have brought in the first rise in retail sales for five months.

Figures released in CBI’s latest monthly Distributive Trades Survey showed that 60 retailers saw year-on-year sales growth this month, at a stronger-than-expected rate.

This increase comes after a flat first half of the year, and is the first rise since February 2013.

Despite this rise, overall sales volumes remained below average for the time of year and sales growth is predicted to slow in August.

Sales rises in clothing were their strongest since February, while a further rise in footwear sales was recorded and department store sales soared with their strongest growth since 1983.

Other sub-sectors, including furniture & carpets and specialist food & drink, experienced falling sales volumes, while grocery sales growth remained modest.

Stephen Gifford, CBI Director of Economics, said: “The feel-good factor from the heatwave and early summer sales has helped boost high street sales, after a very weak start to the year.

“A return to even modest spending is welcome news but the bottom line is that confidence will not bounce back fully until family finances improve significantly.

“A positive knock-on effect on retail sales from the royal baby has been mooted, but much more realistically, continued good weather and discounts will play a greater role in retail growth over the next month.”

This was posted in Bdaily's Members' News section by Miranda Dobson .