With the
current
economic
worries,
people
are
spending
less;
and many
retail
businesses
are
experiencing
dips in
sales.
If your
business
is
feeling
the
pressure
then you
are by
no means
alone.
Retail activity remained subdued in March with high street stores
reporting flat year-on-year sales, the
latest CBI Distributive Trades Survey shows
today (Thursday). About a third (36%) of
retailers told the business organisation
their sales volumes in the first half of the
month were higher than a year earlier while
35% said they were lower.
The resulting balance of +1 was marginally better than retailers'
expectations (-2), which followed February's
figure of -3, the first negative balance
since November 2006.
Unsurprisingly given this slowdown, retailers described sales for
the time of year as poor (29% compared to
15% saying they were good, a balance of
-14). And retailers reported their stock
volumes were more than adequate, relative to
expected demand, and they have ordered less
new stock from suppliers than a year ago.
Breaking the sector down, shoes and leather goods were the most in
demand with a balance of +58 of retailers
reporting year-on-year sales rises. Grocers
continued to grow (a balance of +29, broadly
in line with the 12 month average) and
booksellers and stationers had a good month
too (+17, up from -19 last month).
However, reflecting continued belt-tightening for big ticket items,
durable household goods saw the fifth
consecutive month of shrinking annual sales
(a balance of -77).
Looking ahead to next month, retailers across the sector expect
activity to remain subdued with volumes
expected to be broadly the same as last
April. Orders to suppliers are also expected
to remain lower than the same time last year
as retailers expect sales for the time of
year to be poor.
Ian McCafferty, CBI chief economic adviser, said: "This month's
survey has borne out retailers' expectations
that the strong growth enjoyed in 2007 has
come to an end. The picture now is of
subdued activity as consumers tighten their
belts amid the general cooling of activity
we are seeing across the whole economy.
"One area which saw good growth was the food sector - perhaps
because people are preferring to treat
themselves at home instead of eating out.
However sales of bigger items, especially
white goods, continued to fall, as the
slowdown in the housing market and
tightening of credit takes hold."
If your business is feeling the effects, why
not see what action you can help to both
increase trade and improve your cashflow:
Find out more on increasing sales in our
Sales and Marketing section.
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