The growth in retail sales is slowing as shoppers react to higher interest rates and financial uncertainty. According to the latest High Street survey from the CBI, a balance of just 10 per cent of retailers experienced a rise in sales during the first half of October compared to a year ago. A third of shops reported a fall in sales for the same period. This represents the weakest showing since November 2006, indicating that consumers are choosing to reduce household spending in the face of rises in the cost of borrowing and sluggish growth in earnings. Taken across three months, sales volumes dipped again on a month-by-month basis to 12 per cent, a long way from the peak of 36 per cent achieved in May. John Longworth, chairman of the CBI’s distributive trades panel, said: “The High Street has seen another month of slower growth in retail sales, and although some retailers are doing better than others, it is clear that the buoyant trading period enjoyed earlier this year has tailed off.” He added: “Although slightly better sales are expected in November, retailers’ hopes have been disappointed for the past few months, and they anticipate only subdued growth in the important run-up to Christmas. As consumers begin to feel the pinch, they will look to retailers who offer them value for their money.” Date:2 November 2007
Content by: Made Simple Group
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