Yet a balance of 37% of those in the supermarket sector revealed that sales have risen since the corresponding period in 2007.
This follows today’s TNS Worldpanel biggest brands survey, which found that affordable premium bands fared well in the year up until 20 April.
Chairman of the CBI Distributive Trades Panel and retail director at Asda Andy Clarke said budgets are constantly being limited by the impact of the credit crunch and families are altering their spending patterns accordingly.
“There has been a marked migration to the value end of the market, and many have cut back on luxuries, although the drop in petrol prices should give a bit more breathing space,” he commented.
He said that the supermarkets that have fared the best have altered their pricing structures to fit in with those who are looking for cheaper alternatives.
As inflationary begin to ease up in the coming few months, the Bank of England should have some scope to lower interest rates, and this could offer relief to “consumers and businesses”, added deputy director general at the CBI John Cridland.
The balance of retailers that expect to see a further fall in sales across the whole market stood at 30%, the CBI found.
