Retail sales volumes returned to growth in the year to July, rebounding “solidly” due to the hot summer weather.
The CBI Monthly Distributive Trades Survey found that 46% of retailers recorded sales volumes growth in the year to July, while 25% said they fell, giving a balance of +21%, beating expectations, which were for +17%.
Retailers also expect sales volumes to grow at an even stronger pace next month. Some 51% of those surveyed said they expect sales volumes to grow next month, while 15% expect them to decrease, giving a balance of +36%
Grocers, footwear and leather, and clothing shops performed well but pharmacy sales declined and department stores reported a flat performance.
“Retailers expect an even faster rise in sales volumes next month”
Barry Williams, CBI Distributive Trades Survey Panel
Chair of the CBI Distributive Trades Survey Panel and Asda chief merchandising officer for food Barry Williams said: “As the temperature began to rise, it seems so did sales volumes. Almost all sectors saw growth, with grocers and clothing stores telling us they performed particularly well as people bought barbeque supplies and summer outfits.
“Retailers expect an even faster rise in sales volumes next month, and are stocking up in anticipation of growing demand.”
Barclays head of retail and wholesale Richard Lowe said: “Consumers are still spending, with the intermittent bursts of sunshine helping to boost the fashion sector as Brits look to update their summer wardrobes. Retailers are bringing in extra stock in the hope that the good weather remains as it’s clearly putting a spring in shoppers’ steps.”