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Outlook 'not so bleak', says high street

Retailers in the UK are no longer feeling so pessimistic about their businesses, despite sales on the high street falling for the fourth month running.

The latest figures from the Confederation of British Industries show that 34% of retailers saw a rise in sales in the last few months, whereas 51% saw a drop. This resulted in an overall fall in sales of -16%, with a similar reduction predicted for September. The balance of firms expecting to see a turn for the worse over the next three months is very low, at -2%.

The CBI also said that job cuts were heavier than at the time of the previous survey, carried out in May. A balance of 41% of firms reported that they had reduced their headcount.

After an 18-month period of distinctly negative business sentiment, retailers are no longer feeling so pessimistic about the outlook for their general business situation. The balance of firms expecting a deterioration over the next three months is very modest (-2%) and the least negative since November 2007 (a balance of -1%).

Andy Clarke, Chairman of the CBI Distributive Trades Panel, said: “These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September. Stock levels have been pared right back as retailers have adapted to weaker consumer demand. However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy.”

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