High street sales steady despite UK recession

UK: High street sales steady despite recession

By just-style.com | 27 October 2009

UK high street sales grew modestly in the year to October, according to a CBI survey out today (27 October), but experts forecast a "slow and painful" recovery for some retailers.

The UK business organisation found in its Distributive Trades Survey that the high street anticipates stronger sales growth in November too.

Asked about sales in the year to October, 41% of respondents said that volumes had risen, while 33% said they were down.

The resulting balance of +8% beat expectations (+3%), was an improvement on September's broadly flat sales (+3%), and was the highest since December 2007 (+8%), the CBI said.

It follows an announcement by The Office for National Statistics (ONS) last week that said volume of retail sales in September was 2.4% higher than in September 2008.

The CBI noted sales growth for clothing, footwear & leather retailers and grocers.

Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, said: "The latest official data shows the economy is still in recession, however the retail sector seems to be finding its feet again after a challenging year, and the outlook for November is encouraging. But overall the economy remains troubled and some retailers will find the recovery slow and painful."

The survey was conducted between 29 September and 14 October, with 136 firms taking part.

Sectors: Apparel, Retail

Companies: Asda