 High street trading grew in March compared with a year ago, and at a faster rate than last month, but sales growth remains subdued, the CBI said on Thursday. The CBI’s latest Distributive Trades Survey (conducted 28th February to 16th March) shows
that 42% of retailers saw their volume of sales rise in the year to March, while 27% said they fell. The resulting balance of +15% exceeded retailers’ expectations of zero growth. Meanwhile, retailers anticipate little change in the pace of sales growth next month (+18%).
 Sales in March were considered poor for the time of year, with 16% of retailers reporting sales as good, and 40% saying they were poor. The balance of -24% is the lowest figure since August 2009 (-25%). Retailers anticipate that sales will continue to underperform against seasonal norms in April (-16%), albeit to a slightly lesser extent.
At +19%, the three-month moving average of volume of sales growth was at its lowest rate in eight months, considerably down on February’s figure of +33%. If expectations are realised, it will decline further next month (+14%).
The figures for March show that, for the first time in nine months, orders placed by retailers with suppliers were down (a balance of -8%) when compared with the previous year. This was broadly in line with expectations (-7%). Retailers anticipate that orders will be largely unchanged in the year to April (-2%).
Ian McCafferty, CBI Chief Economic Adviser, said: “Sales growth picked up slightly for retailers compared with last month, but look beneath the surface and conditions remain tough on the high street. Even the best performing sectors – namely grocers and clothing – have seen a slowing trend. With inflation edging higher and earnings growth only modest, household budgets are under increasing pressure. Consumer demand will remain weak in the coming months.”
Nine of the 13 retailing sub-sectors saw an increase in year-on-year sales growth this month. However, sales of clothing also slowed further compared with last month (+22% from +34%),
The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. The organisation is also the UK's official business representative in the European Union, which generates more than 50 per cent of regulation affecting British firms. With offices across the UK as well as in Brussels, Washington, New Delhi and Beijing, the CBI coordinates British business representation around the world.
Image: Retail Sales
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