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Retail sales off to a bad start in 2009

Despite the New Year sales 2009 got off to a poor start for most UK retailers, who reported that sales continued to fall sharply, and expect that February will be as tough, the CBI said on Tuesday.

In its latest Distributive Trades Survey, 16% of retailers said year-on-year sales volumes rose in the first half of January, while 63% said they were down.

The resulting balance of -47% represents another heavy fall in sales, but the decline was slightly slower than in December and broadly in line with expectations.

Looking to February, a balance of 52% expects sales to decline, which is the weakest forecast since the survey began in July 1983.

Looking at individual sectors within the retail market, footwear & leather was the sole sector that saw sales grow compared to a year ago. All other sectors reported a fall, with durable household goods and clothing retailers hit particularly hard.

Sarah Green, Regional Director, CBI North East said: “Most of the retail sector continues to struggle as the recession bites more deeply, and February will be tough. It is possible that pre-Christmas discounting by some retailers numbed many shoppers to the allure of the New Year sales.

“Later this year we hope to see some benefit from recent interest rate cuts, falling inflation, and the Government’s steps to kickstart lending. But retailers will still have to work hard to coax anxious consumers back into the shops.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .