More report sales growth
Retailers could be in for some Christmas cheer, as the balance of firms reporting a year-on-year increase in sales growth is the highest in two years, according to the CBI's monthly trade report.

The survey, conducted during the first two weeks of December, revealed that while 22 per cent of retailers reported a sales decline, 47 per cent unveiled a rise.

This balance of 25 per cent is the strongest recorded since December 2004 (33 per cent) and greatly exceeded expectations of 9 per cent. However, sales growth in January is expected to fall, with a balance of only 4 per cent of retailers expecting a year-on-year growth in sales.

Despite sales volumes increasing for nearly half of retailers, growth is still disappointing when compared with a typical Christmas run-in, according to the report.

Of the sectors, growth was most rapid for food and drink sales volumes. But for the first month since July, the footwear and leather sector reported a year-on-year growth in volumes.

Sales also grew for furniture and carpet stores, but remained broadly flat for chemists.

However, other sectors fared less well. Booksellers and stationers reported a sharp fall in sales. Clothing sales were down on a year ago, for the second month in a row and sales growth in durable household goods came to an end, with the first year-on-year decline for this sector since April.

CBI's DTS Panel chairman and executive director of Asda John Longworth said: 'After a slow start in the run up to Christmas, sales are really beginning to build. In the first two weeks of December retailers' sales volumes outshone their expectations, proving good things can come to those who wait. But consumers have again left it later to hit the shops before Christmas, perhaps because of the unseasonably warm weather and the timing of Christmas Day itself.

'For some retailers, this volume growth will have been achieved at the expense of discounting. 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.'