High street sees slow June sales |
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| Thursday, 26 June 2008 | |
 It has been another difficult month for the high street with retailers fearing beleaguered shoppers will not be tempted by the July sales, the CBI stated this week. Thirty nine per cent of retail respondents to its latest Distributive Trades Survey reported that in the first half of June sales were lower
than a year ago, while 30% said sales had increased.  The resulting balance of -9% disappointed expectations of modest growth in sales volumes, but was an improvement on last month's balance of -14% and April’s very weak figure (-26). A slightly slower decline is predicted next month (-7%). The 9% survey balance equates to annual volume growth of just over 2% on the ONS measure.
The three-month moving average of sales volumes, which levels out monthly volatility, continued its downward trend to a balance of -16% this month, which is the weakest since December 2005 (-18%). Sales for the time of year were also seen as poor by a net 21% of firms - a trend which is expected to continue easing next month, when a balance of 17% expect poor sales. Weak demand prompted retailers to cut the volume of orders placed with suppliers in June (a balance of -12%), and they expect to do so again in July at a similar rate. Stock levels were seen as more than adequate to meet demand by a net 22% of businesses. Andy Clarke, the new chairman of the CBI's Distributive Trades Panel, and Retail Director of Asda, said: "High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions. Sales volumes in the motor traders sector contracted sharply by a balance of -26% which, as expected, brought four consecutive months of growth to an end. The fall in sales was shared by both vehicle and parts & accessories traders. The Distributive Trades Survey (DTS) covers 20,000 outlets of firms responsible for 40 per cent of employment in retailing. Image: Shopping |
