Retail sales remain steady in March CBI
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 today.
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.”