04/10/2010
High street sales in September defied expectations and hit a six-year high, according to figures released by the Confederation of British Industry.
The Independent reports that the CBI's monthly distributive trade survey showed that the balance of retailers reporting a year-on-year rise in sales stood at plus 49% - the highest increase since May 2004.
Ian McCafferty, the Confederation of British Industry's chief economic adviser, said that he expected sales to continue to rise until the end of the year as householders look to make purchases before the VAT increase in January.
"Retailers expect sales growth to continue next month and, as we get closer to January, sales will be helped by households seeking to beat the VAT rise," Mr McCafferty said.
Sales of footwear and clothing proved to be particularly buoyant in September, as parents kitted out their children for the new school year and a new generation of students prepared for life at university.
The Guardian adds that a balance of plus 14 retailers reported an increase in sales, which is the first time sales volumes have exceeded the average for this time of year since June 2007.
News of the strong sales figures is sure to encourage independent retailers. Many of them may now consider increasing their cash flow through sales finance to allow them to invest in expansion and benefit from growing consumer confidence.
October is also set to be a strong month, with a balance of plus 47% of retailers anticipating higher sales volumes than a year ago.
Joseph Jeffries