Retail slump may be over
Jun 25 2009 by Iain Laing, The Journal
RETAIL sales fell for the second month running in the year to June, but the worst of the spending slump may be over.
The CBI’s distributive Trades Survey says that more retailers said sales had fallen than risen, giving a balance of minus 17%.
However, its quarterly figures were the least negative for more than a year, at a balance of minus 10%, in a sign that conditions are stabilising.
Andy Clarke, chairman of the CBI distributive trades panel and chief operating officer of Asda, said: “June’s weak sales figures show that business on the high street isn’t getting any easier. The one consolation for retailers is it isn’t getting any worse and the dark days of the winter are behind us.
“It is too early to foresee a sustained pick-up in retailers’ fortunes over the coming months and the savviest retailers will continue working hard to offer consumers the best possible value for money.”
June’s survey results are in line with those of May and less severe than the falls seen since last July and March 2009, according to the CBI.
Retailers are expecting July to remain challenging, with the balance of minus 21% forecasting further falls in sales.
The survey also showed signs that retailers may be considering restocking after months of slashing stock volumes to match demand.
The CBI said a positive balance of 6% believed stocks were more than adequate to meet demand - the lowest since June 2007.
And orders placed by retailers with their suppliers were cut at the slowest rate since March 2008, at a balance of -10%.
Across the sectors, grocers saw a rise in sales, as did furniture and carpet stores, suggesting they were benefiting from the pick-up in the housing market.
Household goods and clothing were among those to see the biggest falls, the survey showed.
Footwear and leather sales remained flat after two months of strong growth, added the CBI.
