Retail sales fall amid demand slump

Date: 28th May 2009

Retail sales have plunged during the last year as sliding demand piled the pressure on small businesses.

Data published by the Confederation of British Industry (CBI) for the 12 months up to May showed that 48 per cent of retailers recorded a decline in volumes, compared to around a third which noted a rise.

As a result, more companies are likely to have experienced cashflow difficulties, which subsequently may have seen them turn to the support of a small business accountant.

Chief economic adviser at the CBI, Ian McCafferty, said: "Businesses of all types are looking to reduce stock levels during the recession, to adjust to lower demand and to improve cashflow.

"Retailers' efforts appear to be having an impact, with stock levels lower relative to expected demand, which should help improve conditions along the supply chain."

Statistics released by the CBI earlier this week showed that small firms in the services sector began to see a slight upturn in demand during April and May.