According to the CBI, firms have been reporting sales figures typical of the season over the last 10 years.
Retail sales for the first three weeks of December were sharply higher than in the same period in 2002 with the annual growth rate returning to that recorded in October, the CBI's monthly Distributive Trades Survey released today has found.
Stores rated sales in the first three weeks of December as about average for the time of year. Expectations for January were slightly more moderate, however.
Compared with the same period a year ago, 54 per cent of firms reported sales were up in December, while 21 per cent said they were down. The balance of plus 33 per cent compares with plus 19 per cent in November.
With a balance of minus three per cent, sales in December 2002 were slightly down on 2001. That contrasts sharply with December 2001 when a balance of 48 per cent indicated the strongest growth for nearly 15 years.
In this new survey, the underlying trend ñ as measured by the average of the past three months ñ continued to pick-up, a balance of plus 29 was the highest for 18 months.
Retailers ordered more goods from suppliers than previously expected. The balance of firms saying these orders were higher than a year earlier was 33 per cent, the highest figure since April 2002.
Grocers recorded their highest balance
since April 2002. Ian McCafferty, CBI Chief Economic Adviser, said: "Following a slow start to Christmas trading many retailers saw sales gather momentum as the big day drew closer, reflecting the changing patterns of Christmas shopping of recent years.
However some retailers have had to bring forward New Year sales and offer discounts to boost turnover. Consumers' keenness for a bargain, and the intensity of competition in the high street, are keeping retailers on their toes. "
Wholesalers' sales growth over the year to December was similarly modest to that recorded for the year to November. The majority of respondents viewed sales as average for the time of year.
The Distributive Trades Survey covers more than 20,000 outlets of firms responsible for 40 per cent of employment in retailing.
The survey was conducted between 1 and 17 December 2003. There were 234 responses.
No comments yet