26/08/2010
Retail sales during August were the strongest recorded for three years, according to a survey by the Confederation of British Industry which was published today.
As reported by Reuters, the CBI's monthly distributive trades survey reported that sales rose to +35, which far exceeded economists' predictions that it would be +20. It's also the highest figure for sales scored since April 2007.
"Better sales growth continued in the high street in early August, and retailers are upbeat about prospects in the coming three months," said Lai Wah Co, head of economic analysis at CBI. "The summer sales, some warmer weather and the school holidays will no doubt have helped, lifting sales of clothing and shoes and encouraging households to invest in some home improvements."
According to an official statement published by The CBI, retailers expect sales to improve in September, as they are more optimistic about the general business situation in the coming three months. Retailers expect that growth volumes in September will become stronger than they were a year ago.
The news suggests that independent retailers should consider freeing up cash through sales finance, so they can expand the business to make the most of the growing sales figures.
Over half of retailers said the volume of sales grew during the first couple of weeks of August. Clothing, grocers, durable household goods, footwear and leather, and hardware and DIY were the sectors which lead the growth in retail sales.
Laura Nineham