CBI data shows high street retail sales decline in January
Thursday, 26 January 2012 01:43
New data from the Confederation of British Industry (CBI) has shown that high street retail sales decreased in January 2012.
Only 22 per cent of stores experienced a rise in sales volumes in the first two weeks of the year when compared with the same period in 2011, giving a balance of minus 22 per cent.
This is the lowest figure since March 2009 and was described as poor, proving to be lower than the projected minus 18 per cent.
Since orders were also down by 14 per cent, it is expected that retail sales could continue to decline over the coming weeks.
DIY products and hardware performed particularly badly, as did durable household goods, suggesting consumers are reluctant to spend on big ticket items as the cost of living rises.
On the contrary, grocery sales were up by six per cent and online and mail order sales were boosted to the tune of 50 per cent as shoppers looking for bargains on the internet.
CBI spokesperson Ian McCafferty said: "Shoppers have reined in spending across the board at the start of the new year after taking advantage of early discounting last month, which boosted pre-Christmas sales.
"Family budgets are under continuing pressure with inflation still high and wage increases modest."
Howard Archer from IHS Global Insight said the figures are very disappointing and heighten concerns that the economy will contract in the first quarter of 2012, particularly as GDP fell 0.2 per cent in the final three months of 2011.
"The survey reinforces already very high expectations that the Bank of England will announce at least a further £50 billion of quantitative easing in February," he added.
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