Heatwave hit sales, says CBI
Retailers hope for autumn improvement
September 3 2003
The heatwave across UK was a turn-off for shoppers and caused a significant slowdown in retail sales growth, according to the CBI’s latest figures.
However, the CBI sees this slowdown as a blip, with retailers’ sales expectations for the year to September at their strongest for ten months, and optimistic that the overall business situation will improve.
While grocers enjoyed strong sales in August, with shoppers buying cold drinks, ice cream and barbecue foods, stores selling clothing, footwear and leather goods reported disappointing sales.
In all, 41 per cent of respondents said sales were up compared with the same month last year while 29 per cent said they were down. The balance of plus 12 per cent contrasts with plus 27 per cent growth in July.
Retailers are more optimistic about the overall business situation over the coming six months than at any time since May 2002, with more upbeat expectations of sales growth as well as the fastest increase in prices since August 2001.
However, there was no growth in the numbers employed in the year to August, for the first time since November 1998. Employment xpectations for September are their weakest since November 1995.
Ian McCafferty, CBI chief economic adviser, said: “The August heatwave proved to be a turn off for shoppers in some sectors. However, retailers’ strong expectations for September suggest the slowdown was just a blip. The upturn in investment for the first time in over a year is a healthy sign, but expectations of job cuts are disappointing.”
