Retail Sales Down In January

The year-on-year seasonally adjusted estimates of volume of sales in retail fell by 0.6%. The decrease was seen mainly in the smaller stores of 0-9 employees while large stores experienced an increase particularly in the food sector. The snow was cited as a reason for shoppers staying away from the smaller shops. Large stores reported an increase in online shopping.

Retail Sales Increase In March

The value of high street retail sales increased in March by 5.7% compared with the same period last year. The volumes of sales also increased by 3.3%. The growth in volumes was driven mainly by non-retailing and predominantly fuel sales and other stores. Internet sales values increased by 15.2% on last March. Internet sales now account for 8.5% of all retail sales excluding fuel. Looking at the figures on a monthly basis sales volumes increased by 1.8% on February and sales values increased by 1.8%. The monthly increases were driven by sales of predominantly automotive fuel probably due to the threat of a fuel strike. The figures may also have been affected by stores running out of stocks and having to close until restocked.

September Sales Up On Last Year

The value of retail sales on Britain's High Streets increased by 5.4% in September compared with last year according to a statistical bulletin released by the ONS. Volumes also increased, by 0.6%, compared with September 2010.

The monthly figures show an increase in both value and volume of 0.8% and 0.6% respectively, but although sales value increased in the last three months compared with the previous three months, the volume of sales decreased by 0.2%.

Automotive fuel increased by 20% year on year contributing 2% to the overall retail sales percentage points while predominantly food stores sales volumes fell by 0.3% but values increased by 5.7% contributing 2.4% to overall growth. Non-store retailing (including the Internet) increased 15.6% contributing 0.8%. The estimated value of Internet retail sales was £539.4m, approximately 9.6% of total retail sales.

Retail Beginning To Stabilise

The latest CBI distributive trades’ monthly survey, for September, suggests that retail conditions are beginning to stabilise. Sales are basically unchanged on the year to September and expected to remain so in October. A slight majority of retailer respondents to the survey reported sales volumes had risen over the year.

The results are better than expected following months of falling sales. Volumes of orders fell slightly but the three month moving average fall is slowing down. Retailers are keeping stocks low but are more than adequate to meet demand.

The sectors contributing to the overall figures include grocers, footwear and leather goods reporting good year-on-year results. All other sectors are falling, but the pace is slowing for clothing and furniture and carpets. Wholesale is ‘flat’ but are expected to fall next month. Food and drink, clothing, footwear and textiles reported the strongest growth. The hardest hit were industrial materials, builders’ merchants and electrical installation materials. Motor traders sale volumes were more or less unchanged in due partly to the scrappage scheme. They had been expected to grow in the year to September and are expected to fall next month.

Retailers Less Pessimistic About Future

The CBI Distributive Trades Survey shows high street sales falling for the fourth month in a row in the year to August. Running down stocks has left many businesses with a level that is just about adequate but job cuts could be heavier than in May. Most retailers reported a fall in retail sales and a further fall is predicted for September. Sales for the time of year are also reported to be weak. Retailers continue to cut their orders with their suppliers at an even faster rate than in previous months. More jobs may also go before September. Price inflation continues to rise. However, business confidence is improving with many people in business feeling less pessimistic about the general business situation than the last quarter.