High street sales fell for the fourth month running in the year to August, but retailers are no longer feeling pessimistic about the outlook for their business situation in the coming months, according to the CBI.
In answering the latest CBI Distributive Trades Survey, 34 per cent of retailers said that their volume of sales in the year to August had risen, while 51 per cent said they fell. The resulting rounded balance of -16 per cent was similar to sales declines in the previous three months, and was better than expected at -23 per cent. A similar fall in sales of around -14 per cent is predicted for September.
The business organisation also revealed that stocks have fallen further, to a level that is considered to be just adequate, and that job cuts were heavier than in May's survey.
Sales for the time of year were reported to be poor by a quarter of retailers, while the three-month moving average of sales volumes, which smooths out monthly peaks and troughs, remained as weak as in July.
Retailers cut their orders placed with suppliers at a rate of -22 per cent in the last two months, with a similar decline expected in September (-24 per cent).
Andy Clarke, chairman of the CBI Distributive Trades Panel and coo of Asda, said: "These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September. Stock levels have been pared right back as retailers have adapted to weaker consumer demand. However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy."
Sales volumes in the wholesale sector fell steeply over the year to August, with a balance of 48 per cent reporting a fall, which was much sharper than in July. An even steeper decline of around -55 per cent is expected in September. The volume of orders placed upon suppliers has fallen heavily, but wholesalers expect the business situation to improve over the coming three months, and investment intentions are not as weak as they have been over the past year.
No comments yet