High street sales flat in June
Jun 23 2011
Sales are below average for the time of year
The volume of high street sales was flat in June compared to a year earlier, according to the Confederation of British Industry (CBI).
The CBI’s latest Distributive Trades Survey, which spans the period from May 27th to June 15th, reveals that 33 per cent of retailers saw sales volumes increase on a year ago, while 34 per cent reported a fall. The resulting rounded balance of -2 per cent is the first time in a year that sales have not grown (-5 per cent was recorded in June 2010) and compares with +18 per cent last month.
The three-month moving average of sales volumes, which smoothes out monthly volatility, weakened slightly in June (+12 per cent), compared to +18 per cent in May.
For the time of year sales are below average with 17 per cent of retailers reporting them to be good and 36 per cent saying they are poor, giving a balance of -19 per cent.
June’s decline in sales volumes was mainly driven by weakening performance in the two largest sub-sectors. Clothing sales were flat (-2 per cent), the lowest balance since January 2010 (-12 per cent). Meanwhile, grocers’ sales (+26 per cent) grew at the slowest pace in more than two years (+7 per cent in March 2009). Sales of durable household goods (-85 per cent) and footwear and leather (-82 per cent) fell particularly rapidly.
Judith McKenna, chair of the CBI Distributive Trades Panel says, ‘Consumers are really feeling the pinch as disposable incomes continue to be squeezed by rising prices and weak earnings growth.'
She adds that the cost of living is increasing and petrol prices have risen particularly sharply, with shoppers budgeting hard and cutting back on their discretionary spending, such as on clothes and big ticket household goods.
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