Debt Solutions:High Street sales in downward trend as consumers shop around
Tuesday, 7. July 2009
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After a brief rise in April, High Street retail sales in the UK have fallen again in May, according to a new survey by the leading UK business lobby organisation, the CBI.
The CBI’s distributive trades survey reported that 48 per cent of retailers recorded lower sales in the first half of May 2009 compared with May 2008, with only 31 per cent saying sales had risen.
Leading analysts had predicted a balance of minus 10 per cent. However, the resulting balance of minus 17 per cent was a sharp fall from the three per cent rise reported in April.
Experts have said that last month’s figures may have been distorted by Easter falling in April in 2009, as opposed to March in 2008.
In the report, the CBI added that trading conditions are expected to remain difficult this month.
Andy Clarke, chairman of the CBI Distributive Trades Panel said: “Conditions were tough again in May for retailers, proving April’s better sales figure was a temporary blip.”
“As for much of this year, supermarkets and shoe shops were the ones seeing decent growth.
“Sectors more dependent on people’s house moves, such as furniture and carpets and durable household goods, continued to see falling sales.”
Some leading analysts say that, although there have been consumer spending cuts as many people focus on debt consolidation, the High Street has been greatly affected by altered consumer behaviour.
The BBC’s business and economy editor at BBC Scotland, Douglas Fraser said: “There are significant changes in consumer behaviour, which retailers reckon could come to mean a permanent shift on a scale we haven’t seen for generations.”