Fastest growth of retail sales witnessed
While a growth in retail sales of clothing stores and supermarkets does not surprise anyone, a fall of activity in hardware and DIY stores is a shock to the market as it could be an indication of a fall in the interest of people to renovate their houses by themselves meaning the housing market is losing out.
This month, it was found that the retail sales in supermarkets and clothes stores were highly successful as the weather becomes cooler. The CBI has reported the results of one of its surveys which show that October is the third consecutive month to see a steep fall in the sales of hardware and DIY goods. Considering the period of August to October, the sales has exceeded more than in the past three years.
While retailers had a heavy sale season, they said they expect more growth this year. However, those in the retail sale of DIY and hardware goods do not have anything to write home about. Homebase has announced recently that it is closing some if its stores as consumers are less interested in DIY. Other areas of retail sales affected are chemists, specialist food and drink firms. The British Retail Consortium said that online stores have had their weakest performance in the past three months since the 2009 recession.
CBI has reported a sales volume of 31 percent in October which is the same amount reported in September and compared to the previous year, retail sales has increased by 48 percent. Notably, 17 percent of retailers have reported that sales at their stores have fell. Reuters has polled economists and expected a balance of 25 percent in October.
CBI director of economics said, “Sales on our high streets are still ticking along and, with similar prospects next month, retail growth is looking more stable.”