The UK high street reported a slight fall in year-on-year sales in early January, disappointing retailers' predictions and ending a three-month run of sales growth, according to the CBI.

Responding to the CBI's latest Distributive Trades Survey, 28 per cent of retailers said that the volume of sales in the year to early January had risen, while 36 per cent said it had dropped.

The resulting balance was weaker than predictions made last month of sales being broadly flat on a year ago.

The weak sales during the traditional New Year sales period are likely to have been influenced by the UK's extreme cold snap, which coincided with the survey span of 4-15 January.

Looking ahead to February, retailers expect that sales will be largely unchanged on their levels of a year ago.

The three-month moving average of sales volumes fell back from November and Decembers levels, though remained higher than earlier in 2009.

Sales were described as poor for the time of year by a balance of 22 per cent of retailers, which was weaker than December (-16 per cent), while a net eight per cent expect sales to remain below seasonal norms in February.

Grocery and footwear and leather retailers were the only sectors to see strong annual sales growth.

Andy Clarke, chairman of the CBI Distributive Trades Panel and chief operating officer of Asda, said: "2010 has opened on a weak footing, especially compared to the tail end growth of 2009, but the picture should stabilise in February. While grocers and shoe shops had a good start to the year, it has been slightly disappointing for the sector as a whole.

"Also many retailers were much more aggressive in their discounting last January, which could partly explain why sales have slipped a bit this year.

"Overall, the recovery through 2010 is likely to be tentative and weak with a long road to recovery, and consumers are still cautious about spending."

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