Christmas rush 'rescues retail sector'
Wednesday, 20 Dec 2006 12:03
Christmas shoppers have left retailers feeling relieved
Fears that this Christmas could be a disappointing one for shopkeepers have been allayed by the Confederation of British Industry's (CBI) latest distributive trades survey.
The CBI poll, conducted during the first half of December, found that while 22 per cent of retailers said their year-on-year sales were down, 47 per cent said their sales were up.
Representing the strongest positive balance since December 2004, today's survey is the first indication that conditions on the high street will help the struggling retail sector this winter.
"After a slow start in the run-up to Christmas, sales are really beginning to build," John Longworth, chairman of the CBI panel charged responsible for the survey, commented.
"In the first two weeks of December, retailers' sales volumes outshone their expectations, proving good things can come to those who wait."
Mr Longworth warned that many retailers had been forced to engage in heavy price discounting to lure customers into spending, however, with clothing, booksellers and stationers all struggling.
Furthermore, a balance of ten per cent more retailers judged their December sales as relatively poor for the time of year.
"With expectations for only slow growth in January - though this may be given a boost by further discounting - retailers are hoping they can avoid a repeat of last Spring's falling sales volumes," Mr Longworth warned.