Published on 30 - September - 2009

News

39% of retailers reported year-on-year sales volume increase in September, according to the CBI's Distributive Trades Survey.

Sales were broadly flat in September, with predictions that the situation will remain unchanged in October. With 39% of retailers reporting a year-on-year rise in sales volume in September, the Confederation of British Industry (CBI) is encouraged to see retail conditions stabilising.

Although 36% of retailers experienced a fall in sales volume, the resulting balance was better than expected, said the CBI, following on from four consecutive months of falling sales.

CBI Distributive Trades Panel chairman and Asda ceo Andy Clarke said: "After such a difficult summer, it is encouraging to see signs that conditions in the retail sector are stabilising. However, with unemployment rising, wage growth low, and consumers building up their savings, spending is likely to remain subdued for some time."

Volumes of orders placed with suppliers fell by just 4% in September - the slowest rate since February 2008, and CBI expects this to stabilise to 1% next month. The three-month moving average of sales volumes improved on the previous month - a balance of -9%, compared with -16% in August.

Mr Clarke added: "In the months running up to Christmas we may see some shoppers bring forward spending to beat the planned VAT rise. After months of de-stocking, retailers may now be starting to think about getting new products on the shelves."

The survey also revealed that the pace of decline is easing for clothing, furniture and carpets, while, after 11 months of falling sales in the wholesale sector, volumes were broadly flat in the year to September, with a balance of -1%, compared with -48% in August.

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