Survey reveals stagnation on the high street
RETAIL sales stagnated in June, knocking hopes for growth on the British high street.
Annualised sales failed to grow for the first time in a year, the Confederation of British Industry (CBI) revealed yesterday.
While a third of retailers reported higher sales than the same time last year, 34 per cent said that sales were down on a year earlier. After rounding, the survey measured minus two per cent – significantly down from a positive balance of 18 per cent in May.
The underlying trend in sales, which irons out some monthly volatility, eased down to a balance of 12 per cent, from 18 per cent last month – still “clearly in positive territory”, the CBI said, yet the lowest rate of growth since July 2010.
“After a year of growth, high street sales volumes fizzled out in June,” said Judith McKenna of Asda and the CBI. “Consumers are really feeling the pinch as disposable incomes continue to be squeezed by rising prices and weak earnings growth.”
Retailers expect another month of generally flat sales in July. One third expect sales to increase on a year earlier, yet nearly as many (31 per cent) are downbeat, forecasting a lower volume of sales than in July 2010.