Retailers reported that growth in sales volumes
picked up in the year to June, according to the latest monthly
CBI Distributive Trades Survey.
The survey of 115 firms, of which 59 were retailers,
showed that the volume of sales and orders placed upon suppliers
grew modestly – exceeding expectations in both cases - in the
year to June. Overall, sales for the time of year were considered
to be broadly in line with seasonal norms.
Looking ahead, however, growth in volumes of sales is
expected to stall in the year to July, while orders are also
expected to be flat.
Within the retail sector, grocers and non-store
sectors performed particularly strongly. Internet sales volumes
also picked in the year to June, with growth broadly in line with
the long-run average, but retailers expect somewhat slower growth
in the year to July.
Meanwhile, growth in the sales of motor vehicles
turned positive again in the year to June, following the first
fall in sales for three-and-a-half-years in May. However, growth
was below expectations and is expected to remain subdued in the
year to July.
Anna Leach, CBI Head of Economic
Intelligence, said:
“The start of summer has seen shoppers hit the high
street, lifting sales - if only modestly.
“However, there’s no getting away from the fact that
life is getting tougher, with retailers clearly cautious over the
near-term outlook.
“The new Government must now look to picking up the
pace of delivery of much-needed reform. Retailers will want to
see a full review of the distorted Business Rates system sooner
rather than later.”
Key findings
Retailers:
-
23% of retailers said that sales volumes were up in
June on a year ago, whilst 11% said they were down, giving a
balance of +12%. This outperformed expectations
(+6%)
-
14% of respondents expect sales volumes to increase
next month, with 11% expecting a decrease, giving a balance of
+3%
-
24% of retailers placed more orders with suppliers
than they did a year ago, whilst 14% placed fewer orders,
giving a balance of +10%
-
9% of retailers reported that their volume of sales
for the time of year were good in June, whilst 12% said they
were poor, giving a rounded balance of -2%
-
Internet sales volumes continued to expand at a
healthy pace (+46) in the year to June, with growth broadly in
line with the long-run average
-
Sales volumes grew strongly for grocers (+32%) and
non-store sectors (+53%).
Wholesalers:
-
41% of wholesalers reported sales volumes were up
in the year to June, and 16% said they were down, giving a
balance of +25%, the slowest pace of growth since August 2016
(+22%). Volumes are expected to grow at an even slower pace
next month (+14%)
-
The volume of orders placed upon suppliers remained
robust (+20%) and is expected to increase next month
(+35%).
Motor traders:
-
40% of motor traders reported sales volumes were up
in the year to June, whilst 28% said they were down, giving a
rounded balance of +11%, well below expectations
(+27%)
-
Volumes are expected to expand at a similar pace in
the year to July (+11%).
27 June 2017
Notes to Editors:
Firms responding to the Distributive Trades Survey
(DTS) are responsible for a third of employment in retailing. The
survey includes measures of sales activity across the
distributive trades. It was first introduced in 1983 and the
retail results form the UK component of the EC survey of retail
trades.
The survey was conducted between 26 May and 14 June
2017. 115 firms took part, of which 59 were retailers, 46 were
wholesalers and 10 motor traders.
A balance is the difference between the percentage of
retailers reporting an increase and those reporting a
decrease.
