Partner Article

Retail volumes rise in March

New figures indicate that retail volumes rose strongly in May and business confidence is beginning to improve - although sales are still below average for this time of year.

According to the CBI’s latest quarterly Distributive Trades Survey, 43% of retailers witnessed an increase in sales volumes on 2011, while 23% had seen a fall. This resulted in a rounded balance of 21%, which was broadly in line with expectations.

Business sentiment has also turned positive to 3% for the first time since November 2011.

Sales are still below average for the time of year, and despite the recent increase, stock also rose unexpectedly relative to anticipated demand. Most retailers witnessed a sales increase, but most notably grocers, non-specialised shops and furniture and carpet stores.

Judith McKenna, Chair of the CBI Distributive Trades Panel and ASDA Chief Operating Officer, said: “It’s encouraging to see high-street sales up compared to a year ago, and that business sentiment about the next three months has improved.

“However, sales are still below the average for the time of year and the combination of high unemployment, slow wage growth and weak consumer confidence means that the retail sector is likely to remain under pressure in the short term.”

Retail employment increased for the first time since February 2003, and many employers anticipate that this trend will continue into June. Inflation in shops remains robust at 54%, but well below the peak of 73% at the beginning of 2011.

Volumes of sales are expected to grow again on a year ago in June, and the business situation will stabilise over the next quarter, following modest deterioration in recent months.

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