Footwear and leather sales pick up during July in UK’s ‘two speed’ economy
Retail sales in the UK unexpectedly picked up during July, with footwear and leather shops, grocers and durable household goods' stores showing the largest growth in sales compared with a year earlier.
In its latest Distributive Trades Survey released last week, the Confederation of British Industry reported that 76% of its survey sample of 14 footwear and leather retailers said their sales were up in July year on year. 39% said their sales were ‘good’ for the time of year, with 58% reporting average sales. 97% said their volume of stocks in relation to expected sales were ‘adequate’ while only 3% reported that they were overstocked. 57% of all retailers surveyed said their sales were up during the same period.
Sudhir Junankar, the CBI's Associate Director of Economic Analysis, said: "Today's survey is further evidence of the two-speed economy, with retail sales remaining strong while manufacturing output continues to decline. Although retailers enjoyed an unexpected pick-up in sales in July, they do expect sales growth to ease during August. Because of the impact the global slowdown is having on manufacturing and other exposed businesses, the CBI stands by its judgement that a quarter-point cut in interest rates would be a prudent move, without taking risks with inflation."
Retailers reported a slight build-up of stocks during July although they are expected to be run down during August.
