Retail sales disappoint for third month, says CBI

Thirty nine per cent of retail respondents to the CBI’s latest Distributive Trades Survey reported that sales in the first half of June were lower than a year ago, while 30% said sales had increased.

The resulting balance of -9% disappointed expectations of modest growth in sales volumes, but was an improvement on last month’s balance of -14% and April’s -26%.

But grocers, including supermarkets, had another month of strong year-on-year sales growth, with a balance of +67% reporting an increase in sales, which was the highest since December 2005 (+70%).

Clothing retailers reported a survey record low in their year-on-year sales growth, and other sectors including household goods, furniture, hardware and DIY continued to report falling annual sales.

Andy Clarke, the new chairman of the CBI’s Distributive Trades Panel, and retail director of Asda, said: “High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions.

“Grocers have had another strong month, and we are seeing people spend more in supermarkets as they focus on the essentials and also upgrade to higher value food ranges instead of having a night out.”

Food & drink wholesalers enjoyed a particularly strong June.