High street retailers reported a third consecutive month of rising year-on-year sales in July; however growth slowed to a greater extent than had been expected according to the CBI.
In the CBI’s latest monthly Distributive Trades Survey, 44 per cent of retailers stated that their sales volumes were up on a year ago, with 33 per cent reporting a fall. Therefore the resulting balance of +11 per cent was weaker than retailers had anticipated.
Firms reported a growth in orders of five per cent, although this was also a much lower rate than had been expected.
Retailers expect sales and orders growth to moderate further in August, with both predicted to be flat on a year ago (sales three per cent, orders minus-one per cent).
As well as slower growth, sales were 14 per cent below average for the time of year, while, relative to expected demand, stock levels rose 21 per cent from 11 per cent in June.