Retail sales remain steady in March - CBI survey
Sales on the high street were stable in the year to March, although retailers reported they were again disappointing for the time of year, the CBI said.
In the CBI’s latest monthly Distributive Trades Survey, covering the first two weeks in March, 33% of retailers saw sales volumes up on a year ago, and the same figure reported a fall. While year-on-year sales volumes did not see any significant improvement on last month, the resulting balance of zero suggests that sales on the high street may be stabilising.
However, firms reported that sales were still low for the time of year (-27%), and said that over the next month they expect both volume of sales (-4%) and the volume of orders on suppliers (-12%) to remain subdued. Relative to demand, stock levels rose sharply last month (+22%), but are expected to be run down slightly next month.
Some retail sub-sectors reported an improvement in their volume of sales, with others continuing to perform strongly. Furniture and carpets saw an improvement for the second consecutive month (+58%), while a balance of +33% of grocers saw an increase in sales continuing the trend of healthier figures since December last year.
Judith McKenna, Chair of the CBI Distributive Trades Panel and Asda Chief Operating Officer, said:
“It is encouraging that sales on our high streets are stabilising and, while we are still not seeing growth, conditions have improved since the end of last year.
“However, the general retail outlook remains tough and firms expect volumes of sales and orders to fall next month. The squeeze on people’s pockets continues to bite, despite a recent fall in inflation, with wage growth modest and fuel costs remaining high.”
Motor traders saw their first increase in sales (+10%) since December 2010 and expectations were that this will continue in the next month (+10%).
Among wholesalers, 58% reported a rise in volume of sales, while 24% saw a fall. The resulting balance of +34% represents a fourth consecutive month of sales increases, significantly exceeding their expectations of +11%.
Note to Editors:
1. Firms responding to the Distributive Trades Survey (DTS) are responsible for a third of employment in retailing. The survey includes measures of sales activity across the distributive trades. It was first introduced in 1983 and the retail results form the UK component of the EC survey of retail trades. It is an accurate early indicator of monthly retail sales.
2. The survey was conducted between 27th February and 14th March 2012. 119 firms took part, of which 64 were retailers, 46 were wholesalers and 9 motor traders.
3. A balance is the difference between the percentage of retailers reporting an increase and those reporting a decrease.
4. The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.