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Published
May 27, 2015
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Expectations for UK retail sales in June "highest for 17 years"

Published
May 27, 2015

The latest Distributive Trades Survey from UK's CBI, which interviews firms that are responsible for a third of employment in UK retailing, should please UK retailers.

According to the research, growth in retail sales volume picked up in the year to May. 60% of respondents said volumes were up on a year ago, and 9% said they were down, giving a balance of +51%, a strong pick-up in sales growth on the previous month (+12%) and above expectations (+40%).

Corbis


The prediction for June is the highest it's been in 27 years, as retailers expect sales volumes to grow again (rounded balance of +58%), with 63% expecting them to rise and 4% to fall.

Most retail sub-sectors reported "robust" growth in sales volumes. The growth in volume of internet sales slowed to +38%, below expectations of +59%, but growth is expected to pick up next month (+49%).

Rain Newton-Smith, CBI Director of Economics said: “Retailers will be encouraged to see growth in sales and orders on the high street bounding ahead. Low inflation, which we expect to remain below 1% for the rest of the year, has given household incomes a much-needed boost and greater spending power."

“Overall the outlook is bright for firms on the high street, but challenges still remain, especially for food retailers, who are still feeling the heat of stiff price competition from new entrants to the sector. And investment plans have also taken a hit.”
 

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