CBI survey shows high street sales recovering
Friday 11 August 1995
"The underlying message is that retail sales are still growing," said Sudhir Junankar, associate director of the CBI. The survey also showed that retailers are expecting sales to increase in August.
However, Alastair Eperon, chairman of the CBI's Distributive Trades Survey Panel, warned: "Business for the time of year seems likely to be below average."
The breakdown of the survey showed that the depressed state of the housing market continued to affect the high street. The sharpest falls, compared with a year ago, were reported by furniture and carpet stores. The highest increases in sales volumes in July were reported by footwear, leather and clothing retailers.
For the first time since April, the reported rise in sales in July was in line with what retailers had been expecting a month earlier. However, this development seems to have been caused by aggressive attempts to shift stock.
According to Mr Junankar, the survey showed some signs of destocking. The volume of stocks in relation to expected sales fell to its lowest level this year, suggesting that retailers used the July sales to move unwanted goods.
The CBI survey used to be a reliable indicator of retail sales volume but, according to Simon Briscoe, economist at Nikko Europe, the relationship has recently broken down.
This view is echoed by Ian Shepherdson, economist at HSBC Markets. However, he believes that a reported sales balance of about 10 per cent would be consistent with a forecast of a 0.25 per cent monthly rise in the volume of sales in July. This would equate to an annual increase of just under 1 per cent, a far cry from the rates of 3 to 4 per cent seen in 1994.
The breakdown in the relationship between the official figures for retail sales volume and the CBI survey is thought to have several causes. One is the increasing polarisation of the high street between large retailers, which have done relatively well, and smaller retailers, which are suffering.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 4 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Amber Peat: Body found in search for missing 13-year-old who ran away after argument with her parents
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...