Shoe shops leading fightback

Sep 30 2009 By The Journal

RETAIL sales ended four months of falls in September as grocers and shoe shops saw better than expected trading, fuelling hopes that any the decline in the sector has halted.

A slight growth in sales during the month and indications that retailers expect levels to remain broadly flat in October was described as encouraging by the CBI business group.

Its distributive trades survey showed 39% of retailers said sales volumes rose in September, while 36% said they fell.

The resulting balance of 3%, compared to -16% in August, was better than expected and is the first positive number for the survey since April.

In individual sectors, grocers and footwear and leather retailers continued to report strong year-on-year growth and despite falls for all other areas, clothing, furniture and carpet stores saw the rate of decline ease on the month.

Motor traders’ sales volumes were broadly flat as the Government’s cash-for-bangers scheme helped prop up the sector.

But respondents, who were surveyed before the scrappage programme was extended this week, predicted a sharp fall off in sales next month.