Retail sales stabilise says survey

SALES have stabilised but retailers are cautious about the year ahead, according to new figures.

A survey of retailers suggests equal numbers saw sales volumes rise and fall in the year to March.

However, a 27 percentage point majority of firms who took part in the CBI research reported sales low for the time of year while a narrow majority expect volumes to remain subdued.

Asda chief operating officer Judith McKenna said: “It is encouraging that sales on our high streets are stabilising and, while we are still not seeing growth, conditions have improved since the end of last year.

“However, the general retail outlook remains tough and firms expect volumes of sales and orders to fall next month. The squeeze on people’s pockets continues to bite, despite a recent fall in inflation, with wage growth modest and fuel costs remaining high.”

The survey suggests motor traders have seen their first increase in sales since December with the majority expecting the trend to continue.

Among wholesalers, 58% reported a rise in volume of sales, while 24% saw a fall.