The high street got an unexpected pre-Christmas boost today with new figures showing sales volumes in early December grew for the first time in seven months.
However, shop takings were still sales poor for the time of year and the CBI, which conducted the research behind today’s survey, said retailers do not expect the modest sales growth to continue into the New Year, with sales volumes expected to fall again in January.
The CBI’s monthly Distributive Trades Survey, which covers the first two weeks in December, showed 41% of companies enjoyed higher sales than a year ago in the first two weeks of December and 32% experiencing a sales drop. The balance of plus 9% was better than expected and gave the first year-on-year sales growth since May when it stood at plus 18%).
However, the CBI said volumes of sales were poor for the time of year. The three-month moving average, which smooths out monthly peaks and troughs, was negative for the fifth month running (minus 7%) and is expected to remain so in January.
Judith McKenna, Chair of the CBI’s distributive trades panel and ASDA’s chief financial officer, said: “Early discounting helped retailers add a little extra sparkle to their sales in December, although the reprieve appears to only be temporary as they don’t expect sales to continue to grow into January.
“Consumers are continuing to hold off on purchasing big ticket items, including durable household goods, preferring to use their hard-earned cash to stock up for Christmas dinner and all important gifts for the family.”
Grocers’ sales volumes rose on a year ago (plus 52%), as did recreational goods, which includes sports equipment, toys and games (plus 44%) and the non-store category (plus 91%), which takes in mail order and online. Non-specialised retailers, such as department stores, posted better sales this month (plus 1%) following four months of decline.
Sales of big ticket durable household goods, such as washing machines and fridges, hardware and DIY materials and equipment, and footwear and leather goods all fell although sales of furniture and carpets rose. Clothing sales were flat.
