Festive rush yet to begin
Nov 30 2007 by Iain Laing, The Journal
HIGH street sales are showing signs of resilience, but a Christmas sales rush is yet to materialise, according to a study .
The CBI’s distributive sales survey for the first half of November said a balance of plus-13% of retailers saw a rise in sales compared with a year earlier.
The figure is an improvement on the plus-10% balance in October as demand for footwear, leather goods and specialist food drove sales.
However, the business group’s survey also revealed that store owners are increasingly pessimistic over festive trading, with a balance of only 11% expecting improving sales, compared with 15% a month earlier.
Retailers were also forced to hike prices during the period, with the prices balance rising to plus-42% – its highest level since May 1998. The CBI said prices were expected to rise further next month.
News of the price increases is likely to cause concern at the Bank of England, which is due to announce its latest interest rate decision next Thursday.
John Longworth, chairman of the CBI’s distributive trades panel and executive director of Asda, said: “Higher energy and food prices have already started to affect manufacturers and wholesalers and now we are seeing the impact on retailers who have been putting up prices over the past quarter.
“Despite the intense competition in the run-up to Christmas, when we anticipate that retailers who focus on value will do better than the rest, the survey shows that prices are expected to rise again over the next three months.”
