August saw strong retail sales growth, says CBI

Retail sales grew strongly in the year to August, at the fastest pace since November 2012, and exceeded expectations, according to the CBI’s latest quarterly Distributive Trades Survey of 125 firms.

This was the second consecutive quarter of growth and was broad-based across a number of sectors, with clothing sales, grocers and recreational goods performing particularly well.

Retailers reported that sales volumes were above average for the time of year, for the first time since January 2011. Sales are expected to grow robustly again in September.

Employment in the sector grew at its fastest pace since May 2002 and is expected to grow firmly again next month. Retailers also expect their overall business situation to improve over the next three months, with the survey balance at its highest for three years.

Elsewhere, both wholesaling and motor trades sales volumes rose again in the year to August and are both expected to grow solidly again in September.

Barry Williams, Asda Chief Merchandising Officer for Food, and Chair of the CBI Distributive Trades Survey Panel said:

“The feel-good factor from the heatwave, summer sales, royal baby fever and sporting victories has helped boost the high street, with clothing retailers and grocers benefiting in particular.

“A rise in spending is welcome news, but the bottom line is that confidence will not bounce back fully until family finances improve further.

"Retailers expect another similarly strong month of sales growth in September, but this isn't a time to rest on our laurels as shoppers may return to cautious spending until they see a sustained improvement to the pound in their pocket or, dare I say it in August, until the festive spirit kicks in."

Source : CBI
www.cbi.org.uk/media-centre/press-releases/2013/08/high-street-sales-growth-accelerates-cbi/