Over 45 per cent issued neutral trading statements, leaving just 10 per cent with a negative performance. Just six profit warnings were issued during the quarter, down from nine last year.
Grant Thornton retail services team head David Bush said: 'Over the past few years, retailers have experienced extremely difficult trading circumstances, with consumer confidence plummeting and fixed costs sky-rocketing. Perhaps these robust results could mark the start of a resurgence in the retail sector.'
The food and drinks sector was equally encouraging, with 83 per cent of grocers issuing positive trading statements. Bush added: 'Not a single listed grocer issued a profit warning during this period, reiterating the positive tone expressed by retailers in the lead-up to Christmas.'
The research also revealed that 74 per cent of retailers experienced an increase in like-for-like sales, up from 50 per cent in the first quarter of 2006. This figure was bolstered by food and drink retailers, with 100 per cent experiencing an increase in like-for-like sales. Some 69 per cent of all non-food and drink retailers achieved an increase in like-for-like sales.
Bush said: 'Seeing such a substantial increase in like-for-like sales will be music to many retailers' ears. Like-for-like sales reflect the true growth experienced over a set period of time, eliminating sales from extended floor space or new growth channels such as the internet.
'Where retailers have reported problems, these have generally been symptomatic of issues that are specific to their sub-sector - such as warmer weather for clothing retailers and internet sales for entertainment retailers - rather than a generic retail problem.'
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