Sales slump 'slower than predicted'

Date: 24th June 2010

Retailers operating in the UK suffered a slower sales slump than expected this month, new figures have revealed.

According to the latest report from the Confederation of British Industry (CBI), 34 per cent of retailers reported a rise in sales volumes during the first two weeks of the month, while 39 per cent reported a fall.

While this left a net balance of -5.0 per cent, this was lower than the -15 per cent that was predicted and the -18 per cent that was reported last month.

According to the CBI, sales are also set to pick up in July on the back of the World Cup.

Ian McCafferty, CBI chief economic adviser, said: "High street sales weakened slightly this month after a mixed performance across the sector.

"Footwear and leather goods retailers were the worst hit, but grocers and durable household goods enjoyed solid growth. This may reflect consumers gearing up for the World Cup by stocking up on food, drink and new televisions."

The expert said that as the recently-announced VAT rise does not come into effect until January, retailers may benefit from some advanced spending later this year.

Posted by Jacob Williams