Published on 26 - January - 2012
CBI: December discounts backfired for DIY retailersDIY and hardware sales were significantly down during the first two weeks of January because shoppers had already taken advantage of pre-Christmas discounts, says the Confederation of British Industry (CBI).
Figures from the Confederation of British Industry (CBI) revealed sales in the DIY and hardware industry took a significant dip in the first two weeks of January 2012.
The CBI survey asks retailers whether sales are up or down, and subtracts one from the other to give an overall picture of the market.
The January survey saw 44% of all retailers reporting sales down year-on-year against only 22% reporting sales up, giving an overall 'all retailers' balance of minus 22%.
The most buoyant sector was 'non-store retail' (CBI-speak for online retailers) which recorded a +50% balance. Grocers did fairly well too, with a balance of +6%.
But hardware and DIY reported a grim picture, with a -80% balance. This was exceeded only by durable household goods, where the balance was -100% - in other words, every single retailer reported sales were down year on year.
"Family budgets are under continuing pressure with inflation still high and wage increases modest. Consumers are still holding off particularly from buying big-ticket items like washing machines and fridges," said CBI chief economic advisor Ian McCafferty.
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