July predicted to be positive for retailers
Published:  26 June, 2013

Retail sales are expected to pick up next month according to a survey carried out by the Confederation of British Industry (CBI).

The information, which was collated in a monthly Distributive Trades Survey, will be received with pleasure from a sector that has suffered from stagnant sales over the last 12 months.

In total the survey of 115 firms, which was carried out between 29 May and 13 June, revealed flat retail sales volumes in the year to June, which “disappointed retailers’ hopes of modest growth”, the CBI said.

“Sales volumes were a fair way below average for the time of year in June, despite expectations they would be broadly in line with seasonal norms. Stock adequacy picked up on last month, in line with its long-run average,” it added.

Asda chief merchandising officer for food and chair of the CBI Distributive Trades Survey panel Barry Williams explained that, despite an improvement in British weather, retailers were disappointed they did not see growth in June. “But the forecast is looking good for July when it’s hoped retail sales will return to form,” he said.

“However, with the cost of living still much higher than pay growth, family spending power is likely to remain fragile through the summer."