High Street Sales Grow

 

Sixty per cent of retailers surveyed said that the volume of sales rose during September, while 11% said that it fell, giving a balance of +49%. This was the highest balance since May 2004 (+51%), and compares with an expected figure of +39% last month.

Sales volumes (+14%) were also above average for the time of the year for the first time since June 2007. This increase was also reflected in the volume of orders placed upon suppliers (+39%), which rose strongly again on a year ago, surpassing last month’s prediction of +29%.

The clothing and footwear & leather sub-sectors saw particularly strong sales growth, which are likely to have been boosted by the arrival of new autumn ranges. Looking to October, a balance of +47% of firms expect a higher volume of sales than a year ago.

Ian McCafferty, CBI Chief Economic Advisor, said: “High street sales have performed well again this month, with growth better than retailers predicted. The bank holiday weekend, combined with the tail-end of summer sales have resulted in a bumper period for retailers. Clothing and footwear sales in particular look to have been boosted by the launch of new autumn ranges.

“Retailers expect sales growth to continue next month and, as we get closer to January, sales will be helped by households seeking to beat the VAT rise. However, weak prospects for take-home pay mean that consumer spending is likely to be fairly restrained in 2011.”

Sales volumes rose for the second month in wholesaling, but the increase was slower than in August. A broadly similar rise in sales is predicted next month. 47% of wholesalers said that volumes were higher than a year ago and 33% said they were down, giving a balance of +14% which was slightly lower than expected last month (+22).