05/08/2010
The hot weather, combined with the World Cup, have helped the British retail industry to report the strongest month of sales growth seen across the recession.
As reported by The Guardian, the Confederation of British Industry (CBI) said that over half of shops and stores questioned reported an across-the-board pick up in trade when compared with the previous year.
"High street sales have performed well this month, with growth better than retailers predicted," explained Lai Wah Co, head of economic analysis at CBI. "Annual summer discounts and warm weather helped lift sales of clothing, while grocers and durable household goods retailers appear to have benefited from a World Cup boost to sales of food, drink and new televisions."
As reported by Reuters, the news comes despite fears that the public sector squeeze would limit people's spending. So many retailers expected that sales would be up in August that it's the most positive response measured by the CBI for six years.
According to The Guardian, the growing confidence in the retail sector shows that now is a good time for businesses to expand. Whilst many businesses might not have the cash flow to grow their business, financing methods such as invoice discounting provide a confidential way of freeing up cash from invoices that can be pumped back into the business in a way that stimulates growth or expansion.
Vicky Redwood, UK analyst at Capital Economics, was quoted by The Guardian: "July's CBI distributive trades survey suggests that high street spending is roaring away. We remain sure that the fiscal squeeze will slow the consumer recovery - but there's not sign that this is happening yet."
Laura Nineham