Heatwave brings shoppers out but outlook less positive – survey

0
45

Heatwave brings shoppers out but outlook less positive – survey

Half of firms reported that sales volumes were up on a year ago, according to the CBI Quarterly Distributive Trades Survey.


File photo dated 04/12/16 of shoppers.
File photo dated 04/12/16 of shoppers.

The heatwave encouraged shoppers on to the high street in August – but the outlook for retail remains “challenging”, a survey suggests.

Retail sales grew at an above-average pace in the year to August, but declines in employment, investment intentions and business optimism means the outlook is less positive, according to the latest CBI Quarterly Distributive Trades Survey of 112 firms.

Half (51%) of respondents reported that sales volumes were up on a year ago and 21% said they were down, while 43% expect them to rise next month and 22% believe they will fall.

The growth was mainly driven by grocers, department stores, and internet and mail order sales, but fell in clothing, furniture and carpets, and hardware and DIY.

However, the poll found growth is expected to ease to around its long-run average next month, while orders placed on suppliers fell sharply in the year to August and are expected to continue to decline in September.

The CBI said that although the summer months seemed to have provided a boost to retail, it expected momentum to be relatively subdued going forward.

Anna Leach, CBI head of economic intelligence, said: “The summer heatwave has kept shoppers out on the high street, with consumers splurging on food and drink for barbecues and garden parties.

“That said, the outlook for retail remains challenging, with orders falling, prices rising, employment sliding, and investment drifting down.

“The long-term challenges facing the retail sector are significant and won’t be resolved overnight. Subdued real wage growth and digital disruption continue to pile pressure on firms, while high street retailers continue to suffer under an out-dated business rates system.”

document.addEventListener(‘DOMContentLoaded’, function() {
if (!document.querySelectorAll(‘.widget.video.vms’).length) {
var s = document.createElement(‘script’);
s.type = ‘text/javascript’;
s.async = true;
s.src = ‘https://independent.mainroll.com/a/independent_floating_outstream.js?dfp_adunit_l1=InArticleVideo&dfp_adunit_l2=World_News&dfp_adunit_l3=Home&dart_articleId=37245096&dart_art_ID=37245096&dart_kw=%5B%22Czech%20Republic%22%2C%22Drought%22%2C%22Drought%22%2C%22reveals%22%2C%22ancient%22%2C%22hunger%22%2C%22stones%22%2C%22in%22%2C%22European%22%2C%22river%22%5D&section=worldnews’;
document.getElementById(‘bb-outstream-37199872’).parentElement.appendChild(s);
}
});

#bb-iawr-inarticle- { clear: both; margin: 0 0 15px; }

Press Association

!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+’://platform.twitter.com/widgets.js’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);

(function() {
var zergnet = document.createElement(‘script’);
zergnet.type = ‘text/javascript’; zergnet.async = true;
zergnet.src = (document.location.protocol == “https:” ? “https:” : “http:”) + ‘//www.zergnet.com/zerg.js?id=46430’;
var znscr = document.getElementsByTagName(‘script’)[0];
znscr.parentNode.insertBefore(zergnet, znscr);
})();