High street sales down on 2010
Nov 28 2011
The high street is struggling even in the run-up to Christmas
High street sales volumes fell on a year ago in November for the sixth consecutive month, with retailers expecting another decline in December, according to the Confederation of British Industry (CBI).
The CBI's latest quarterly Distributive Trades Survey reveals that 26 per cent of retailers saw the volume of sales rise in the year to November, while 44 per cent say they fell. The resulting rounded balance of -19 per cent is weaker than expected (a balance of +4 per cent), and represents the fastest decline in sales since March 2009 (-44 per cent).
Sales volumes are considered below average for the time of year, with a balance of -39 per cent, the weakest figure since March 2009 (-42 per cent). The decline in volumes is driven by pressure on grocers (-21 per cent), specialist food and drink stores (-51 per cent), department stores (-49 per cent) and clothing (-27 per cent).
The volume of orders placed with suppliers fell in November (-25 per cent), again the fastest rate since March 2009 (-47 per cent). Orders are predicted to continue falling next month (-18 per cent).
Employment across the sector fell at the fastest rate since November 2009 (-27 per cent) in the year to November. The survey shows that 13 per cent of retailers increased their headcount, while 40 per cent reduced numbers, giving a balance of -27 per cent.
CBI chief economic adviser Ian McCafferty says that retailers remain hard-pressed, even as Christmas approaches.
‘The relatively mild weather this autumn has hit clothing stores particularly hard, and retail sales are down year-on-year for the sixth month in a row.
'Retailers may be hoping that shoppers will loosen their purse strings in the run up to Christmas, but consumers are likely to remain cautious about spending given the uncertain economic outlook.,' he adds.
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