Retail sales were higher in May than a year earlier, the Confederation of British Industry reported. For the second consecutive month sales were better than expected and they are expected to be slightly stronger in June. Grocers are third on the list of strongest growth areas behind footwear and leather goods.
While sales growth is better than in the first quarter of 2003, it is well below the rates of growth seen last year and longer term averages. Alistair Eperon, chairman of the CBI's distributive trades panel and a director of retailer Boots said: 'Spending over the past couple of months has been boosted by the good weather, low unemployment, the end of the Iraq war and the prospect of another rate cut. But we are still well down on the growth seen in 2002.'