The grocery sector is stronger than this time last year, as the CBI's latest Distributive Trades Survey today reported the best results since January.
The alarming slump in retail sales has arrested as some 44 per cent of retailers said year-on-year sales volumes rose in the first half of April, while 41 per cent said they were down - a four per cent better result than January.
Although this is a marked improvement on the heavy falls reported in March (a balance of -44 per cent), retailers do not expect it to last into May, when they foresee declining sales again (-15 per cent).
Every respondent reporting from the grocery industry has reported sales to be up on a year ago.
Sales volumes in the wholesale sector fell again in the year to April, but the balance of 18 per cent reporting a fall was much less severe than in recent surveys.
The three-month moving average of sales volumes, which smoothes out monthly peaks and troughs, remained negative at -22 per cent, but was an improvement on March.
A balance of 11 per cent of retailers reported a year-on-year fall in the volume of orders placed upon suppliers, which is less weak than in March (-47 per cent). A balance of 22 per cent of firms said stock levels are more than adequate to meet expected demand, up 15 per cent last month.
Andy Clarke, chairman of the CBI Distributive Trades Panel and chief operating officer of Asda, said: "The good turnout by shoppers over this year's later Easter may well have influenced the April retail figures, and while they mark a respite, they should not be taken as an indication of a high street revival.
“With unemployment rising and growth in average earnings down, consumers remain very wary, and retailers themselves think that sales will drop again in May."
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