Slow UK sales growth continues

28/06/2007

According to the latest Distributive Trades Survey from the Confederation of British Industry, sales growth in the UK retail industry for the first half of June has been less than expected for the second month running and is significantly below April's three-year high.

The survey showed that for 37% of retailers year-on-year sales were up in the period, while 20% claimed they were down. This balance of +17 is in line with the long-term average, but is the lowest since November last year. Retailers expect a similar growth rate in July and, although the volume of orders has slowed a little, it remains above average.

The poorer weather during June contributed to an annual rate of decline for clothing sales that has only been seen once before in the survey's 24-year history; the balance of -52% was previously recorded in July 2005. Clothing, textiles and footwear wholesalers have reported the weakest sales balance (-75%) since July 2001 (-88%).

The survey, which was conducted between May 30 and June 13, involved 146 businesses representing 20,000 outlets and 40% of retail jobs.