Retail growth during November has been 'steady but disappointing', according to the Confederation of British Industry.
Results from CBI's quarterly distributive trades survey anticipate that the situation will remain the same in the build up to Christmas. However, last November some 42 per cent of firms saw sales rise while only 21 per cent experienced a drop in profit. The British Retail Consortium (BRC) estimates this year's growth at just two per cent on a like-for-like basis with last year.
Alastair Eperon, chairman of CBI's distributive trades panel, commented: 'Although sales growth is steady, nobody expects to break any records this Christmas. The early build-up has been somewhat disappointing. With sales volumes remaining well below the levels of the first four months of this year, and continued pressure on prices, retailers are cutting back on their investment in buildings and machinery over the coming 12 months.' While the BRC's director general, Bill Moyes, added: 'We expected November's figures to be low and so they are. This is mainly because regular interest rate cuts generated especially strong retail sales growth in November 2001. However, the underlying trend of sales growth remains positive.
'Christmas is likely to be satisfactory, but perhaps not spectacular. If that proves true, the case for a further cut in interest rates will strengthen.' Most sectors reported some degree of growth last month, with specialist food shops among those in this category. The BRC describes the food and drink sector as remaining 'steady' during November.