UK retailers boosted by unexpected sales
Good weather and deep discounts attract customer
July 31 2003
UK retailer received a unexpected sales boost in July as the good weather across much of the UK encouraged customers to visit the Summer Sales.
The CBI conceded the fastest increase in sales since April 2002 had caught its members by surprise, with retailers having expected July to show the same modest sales growth as June.
Its monthly Distributive Trades Survey found that 54 per cent of respondents said sales were up over the same month last year, with 27 per cent saying they were down. The balance of plus 27 per cent compares to plus ten per cent growth in June.
Sales were also further above average for the time of year than at any time since May 2002, with retailers expectations for growth in August the highest since last December.
Retailers of footwear and leather goods saw the biggest increases, followed by thos selling groceries and durable household goods such as fridges and hi-fi. The biggest annual declines in sales were for specialist foods, furniture and carpets.
Doug Godden, CBI head of economic Analysis, said: “Retailers have had a surprisingly good July. Warm weather and the later start to the Summer Sales have particularly helped sales of food and drink and electrical goods. The latest cut in interest rates may also have helped and, more generally, consumer confidence appears to be holding up well.
“But with the real value of take-home pay down on a year ago, this sales growth is heavily dependent on borrowing so it remains to be seen whether it will continue at this rate over the rest of the summer.”
