Not Much Change In Retail Trades

Retailers reported yet another fall in retail sales volumes for the first two weeks of June compared with last year in the latest CBI Distributive Trades Survey results. The decline was more or less what was expected, more than last month but not as much as the previous month and nothing like the falls that have been witnessed during the last year. Retailers also reported that they expect sales to fall for another month in July. Stocks are more than adequate to meet demand so retailers have been slowly cutting back on orders with their suppliers. Sectors to see some growth include grocers and furniture and carpets. Durables, hardware, china, DIY and clothing showed sharp declines. The fall in the wholesale sector was sharper than the previous two months. If the fall extends into July it will be the thirteenth month in a row of falling sales. The hardest hit were the industrial and builders merchants wholesalers. Agricultural machinery and food and drink wholesalers saw no change on the year. The scrappage scheme may have had something to do with the motor sectors best sales figures for over a year.

Sales Reflect Retailers Expectations

Retailers' year-on-year sales fell again in May according to the latest CBI Distributive Trades Survey results published today. There had been a brief pause in the decline in April but at least the monthly results reflect retailers' expectations for the month and confidence is the least negative for a year.

Employment conditions remained difficult in May and staff reductions continued to mount. Prices rose during the month and similar rates of price inflation are expected in the August quarterly DTS survey. A small majority of firms expect the general situation facing retailers to get still worse.

Wholesale and motor traders' sales fell faster in the year to May than in the year to April. Average selling prices in both sectors also increased. In the motors sector prices increased at the fastest rate since August 1990. Investment plans in the wholesale sector are lower than at any time since February 1991.