Leather and footwear lead UK sales decline
25/06/2010
More than a third of retailers surveyed (34%) reported a rise in the volume of sales during the first two weeks of June compared with the same month last year, while 39% reported a fall. The resulting -5% balance beat the anticipated balance (-15%) as well as May’s -18% balance.
The three-month average was -3% having been positive for seven months in a row, with 11% of retailers describing sales as poor for the time of year. The sales decline was led by footwear and leather, which saw a sharp fall in sales after eleven months of solid growth, followed by hardware, china and DIY products.
Looking ahead to next month, sales are expected to recover some ground, with a balance of 11% expecting volumes to be higher than a year ago. However, 8% of retailers still expect sales to be poor for the time of year.
Ian McCafferty, CBI chief economic adviser, said: “High street sales weakened slightly this month after a mixed performance across the sector. Footwear and leathergoods retailers were the worst hit, but grocers and durable household goods enjoyed solid growth. This may reflect consumers gearing up for the World Cup by stocking up on food, drink and new televisions.
“Retailers are hopeful that sales will strengthen next month. As the survey pre-dates the emergency budget, news that the feared rise in VAT will not take effect until next January may well also encourage some advance spending over the second half of the year.”
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