Since the recession there have been numerous peaks and troughs in Britain’s economic recovery. The economy was dealt a blow recently when the CBI announced its figures of a slowdown in the high street retail market.
The new distributive trades report, from CBI , which surveyed swathes of people involved in the retail industry between the period from 27 May to 15 June, declared that: ‘33% of retailers saw sales volumes increase on a year ago, while 34% reported a fall. The resulting rounded balance of -2% is the first time in a year that sales have not grown (-5% was recorded in June 2010) and compares with +18% last month.
The report continued to state that, for the first time this year, sales in the retail market were falling below average. There numerous reasons for this slowdown, however the CBI report, points towards a poor performance in the clothing sales market, with sales falling by 12 per cent from January 2010 figures.
This figures come are bad news for the commercial property market, which is desperately hoping that for a thriving retail market, which will in turn boost the commercial property sector.
Perhaps the commercial property ship should get ready to batten down the hatches once again, with Judith McKenna, Chair of the CBI Distributive Trades Panel and ASDA Chief Financial Officer, warning that there could be further bad news for the retail market. Mckenna said: ‘After a year of growth, high street sales volumes fizzled out in June. Consumers are really feeling the pinch as disposable incomes continue to be squeezed by rising prices and weak earnings growth…The cost of living is increasing and petrol prices have risen particularly sharply. Shoppers are budgeting hard and cutting back on their discretionary spending, such as on clothes and big ticket household goods…Household budgets are likely to remain tight over the coming months, with inflation edging higher as increases in domestic gas and electricity prices take effect.’
