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August 02, 2005
CBI warns on continuing poor high street sales
According to a survey by business group the CBI, 50% of retailers recorded a decline in sales volumes in July. The survey found that 29% of retailers reported sales volumes up on the year, while 47% said they were down.
The head of the CBI, Sir Digby Jones, said the Bank of England should reduce interest rates, at its monetary policy committee meeting this week, in order to maintain growth and consumer confidence. He said the Bank should act quickly rather than adopt a “wait and see” approach.
Retailers did not report any serious effects from the bomb attacks in London on 7 July. The impact of the second, failed attack, will be reflected in the CBI’s August survey.
The CBI’s survey of retailers' sales gave a balance of -18, compared with a balance of –19 in June. The result was the lowest since the survey began in 1983. Annual retail sales have not increased since the end of 2004, reflecting anxiety over a slowdown in the housing market, interest rates and tax increases.
Parts of the retail sector, such grocery retail, remained strong, but other sectors, such as furniture and carpets, continued to decline. Sales of clothing, confectionery and tobacco all fell significantly faster than in the previous month.
In a separate survey, retail business information group Footfall said that shopper visits across the UK decreased by only 1.1% in July. It said the effects of the 7 July bomb attacks in London were mainly localised, with shoppers preferring to shop in surrounding areas, rather than in central London.
Posted by at August 2, 2005 06:19 PM
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