High street retailers gain confidence

Date: 28th August 2009

Confidence in the retail sector appears to be improving despite continuing falls in sales this month, the Confederation of British Industry (CBI) said today.

The business group conducted a poll and found that 51 per cent of retailers had a drop in sales volumes in August, while 34 per cent reported an increase.

In addition, the organisation discovered that the balance of companies expecting economic conditions to worsen in the next three months had reached its lowest point since November 2007.

However, unemployment continues to besiege the sector, with some 41 per cent of retail businesses having made job cuts and a third planning to continue workforce reductions into September.

Andy Clarke, chairman of the CBI Distributive Trades Panel, said: "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."