High Street Volumes Below Expectations

Retailers were disappointed at 'flat' retail trade after hopes of growth to seasonal norms but it was better than the year-on-year fall in sales of last month according to the latest CBI Distributive Trades Survey. Sales are expected to improve again next month. Sales volumes showed slight increases for a narrow majority of retailers.

Wholesalers and motor traders both reported increases in sales volumes but they were also below expectations.

Sales Growth On The High Street Expected To Continue

Retailers have seen growth for the second month running according to the CBI Distributive Trades Survey for March. The trend is expected to continue through Easter. Sales volumes were reported to be higher than the same time last year as expected. The volume of orders also grew for the second month in a row. Stock levels are more than adequate to meet demand. Very strong sales were reported by grocers, durable household goods, clothing, furniture and carpet retailers. Hardware, china and DIY reported falling sales for the second month. The wholesale sector also saw a fall in sales against expectations. There was strong sales growth in the food and drink sector but agricultural machinery sales and builders merchants had a difficult month. Motor traders also had another bad month due to a drop in vehicle sales while parts and accessories sales grew for a second month.

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.