Home / Knowledge / News / Retailers eye Xmas boost as high street sales strengthen
Retailers eye Xmas boost as high street sales strengthen
26
Nov '10
The volume of sales on the high street was higher in November than a year ago, for the fifth consecutive month, as shoppers started gearing up for Christmas.

The Confederation of British Industry's (CBI) latest quarterly Distributive Trades survey revealed that 55% of retailers saw the volume of sales rise in the two weeks to November 10th, while 13% said they fell. The resulting rounded balance of +43% was in line with expectations, and an improvement on October's balance of +36%. However, a net 6% of retailers said sales in November were below average for the time of year.

Sales grew most strongly in November for grocers and clothing retailers. The three-monthly moving average of sales volumes, which smoothes out monthly peaks and troughs, edged higher to a balance of +43%.

Looking ahead to the crucial pre-Christmas period, retailers expect strong sales volume growth to continue in December (+45%), and a net 11% of retailers expect the overall business situation to improve over the next three months.

After extremely sharp cuts to investment spending during 2008-2009, for a second quarter running, retailers are planning to invest more over the next 12 months, compared to last year (+28%).

Ian McCafferty, CBI Chief Economic Adviser, said:

“High street sales growth held up well in November, and retailers are hopeful that the run-up to Christmas will be just as strong.

“However, looking into the New Year, retail sales growth may lose some of its sparkle, as consumers rein in spending after Christmas.

“Confidence remains fragile, VAT is rising in January, and a combination of weak wage growth and high inflation is eating into household incomes.”

Price inflation remains high with 51% of retailers saying average selling prices rose on a year ago, and 6% saying they fell. That gives a balance of +45%, compared to +58% in the August quarter. Prices are expected to rise at a similar pace in December (+42%). Numbers employed in the retail sector fell only slightly in the year to November (-5%).

Looking at the wholesaling sector, sales volumes rose in November compared with a year ago, with sales of clothing, textiles and footwear, and industrial materials among the best performers. Of those wholesalers responding, 41% reported a rise in sales volumes, and 20% a fall.

That gives a rounded balance of +20%, which was better than expected (+3%), and an improvement on October's lacklustre performance (+3%). Sales growth is expected to be flat in December. Employment continued to fall among wholesalers (-24%), and they are scaling back investment (-18%). Sentiment about the general business situation over the coming quarter has also weakened (-13%).

In the motor trades, sales volumes fell sharply in November, compared to a year ago. The balance of -48% was worse than expected (+13%), and the weakest balance since July 2009 (-76%). Sales volumesare expected to fall again next month (-37%). Employment is little changed (-2%), but investment intentions weakened (-27%) after positive readings in the previous two quarters.

Confederation of British Industry

Must ReadView All

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Courtesy: Shopper Stop

Apparel/Garments | On 30th Mar 2017

Contactless payments at Shoppers Stop

India's leading fashion retailer Shoppers Stop has entered into a...

Textiles | On 30th Mar 2017

Cotton target price kept unchanged in Xinjiang

China’s National Development and Reform Commission (NDRC) has kept...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search