Retail sector still sluggish
May 03 2011
Retail is yet to really pick up in 2011
The pace of retail growth remains subdued despite the volume of high street sales rising in April, according to data from the Confederation of British Industry (CBI).
The CBI’s latest Distributive Trades Survey of 130 companies, which covers the two-week period from 30 March, finds that 45 per cent of retailers saw the volume of sales rise in the year to April, while 24 per cent say they fell.
The resulting balance of +21 per cent is in line with expectations (+18 per cent), but next month businesses expect no growth in sales volumes (-1 per cent).
While 12 per cent of retailers report sales to be good, 35 per cent say they were poor, and the resulting balance of -23 per cent is similar to last month’s figure, the lowest since August 2009 (-25 per cent). Retailers expect that sales will remain well below seasonal norms in May (-18 per cent).
CBI chief economic adviser Ian McCafferty says, ‘Despite slightly better year-on-year sales growth in April, this survey shows things are far from rosy on the high street. For the third month in a row, retailers considered sales to be unseasonably poor, stocks are running quite high, and orders with suppliers are expected to fall.
‘With few signs of demand picking up rapidly in the coming months, conditions on the high street look like remaining tough for retailers.’
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