Sales figures predict lean Christmas
Dec 01 2008
Christmas this year could be harsh for small retailers, after figures from the Confederation of British Industry (CBI) show sharp falls in high street sales.
The organisation's latest Distributive Trades Survey reveals 62 per cent of companies report sales are lower in the first half of November compared to last year.
In addition, the three-month moving average of sales volumes, designed to smooth out monthly volatility, shows performance is as weak in November as it was in October, while 42 per cent of retailers describe conditions as 'poor'.
Confidence in retail also remains weak, with 37 per cent of companies saying they expect the business environment to decline for the next three months.
Andy Clarke, chairman of the CBI Distributive Trades Panel, comments: 'Christmas is going to be extremely tough this year, with retailers having to work harder than ever to keep the tills ringing. Big ticket items like consumer durables, furniture, carpets and DIY are really being hit.'
The report also shows lack of sales and confidence is impacting on employment, as 16 per cent of retailers reveal they have reduced their workforce in recent months.
Last month, the CBI reported smaller manufacturers have started cutting staff for the first time in 18 months, driven by weak domestic and global demand for UK-made products.
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