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 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Steve Cole
Xerium Technologies

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X